* To pay stock dividend on 1.62 bln shares, 38 pct of total
* Deutsche Telekom will issue 130 mln new shares
* Total cash dividend amounts to 1.87 bln euros
(Add CFO comment, detail, background)
FRANKFURT, June 10 Deutsche Telekom
shareholders owning about 38 percent of its total capital opted
to take their 2012 dividend paid in shares, the company said on
Monday, giving the former monopoly more money to play with on
Deutsche Telekom, which wants to preserve cash as it plans
to pump 6 billion euros ($7.9 billion) in the next three years
into broadband services, had given shareholders the option of
taking the 2012 dividend of 0.70 euros per share in stock or in
Though more common in other European countries such as the
United Kingdom and the Netherlands the option for a stock
dividend is a novelty in Germany, where shareholders like to
receive their dividend in cash.
"This shows our shareholders have confidence in Deutsche
Telekom's strategy," said the company's Chief Financial Officer
Timotheus Hoettges. "The take-up exceeds our expectations."
As an incentive to take the stock, Deutsche Telekom said it
had offered the payout in new shares priced at a 2 percent
For every 12.5 shares held prior to the dividend approval on
May 16, shareholders who choose not to take cash will receive
one extra share.
Deutsche Telekom said it will issue 130 million new shares,
while it will pay out 1.87 billion euros to the shareholders who
wanted the dividend in cash.
Had all Deutsche Telekom's shareholders chosen a cash
payment, it would have cost the company around 3 billion euros.
Last week, the German state decided in favour of a cash
dividend on its 14.96 percent stake in the company.
($1 = 0.7564 euros)
(Reporting by Harro ten Wolde; Editing by Christoph Steitz and