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Deutsche Telekom may sell UK, Dutch units in 2013: paper
April 17, 2012 / 7:35 AM / 6 years ago

Deutsche Telekom may sell UK, Dutch units in 2013: paper

FRANKFURT (Reuters) - Deutsche Telekom (DTEGn.DE) may look into selling its units in Britain and the Netherlands as early as next year, after having given local management time to improve results, the Financial Times Deutschland reported on Tuesday.

The logo of Deutsche Telekom is pictured during the annual news conference in Bonn February 23, 2012. REUTERS/Ina Fassbender

Citing company sources, the newspaper said Deutsche Telekom had looked into selling the units in the past and would do so again in 2013, the paper reported.

It said the performance of the European units would be the subject of an annual strategic meeting of Deutsche Telekom management during the European summer.

A spokesman for Deutsche Telekom declined to comment.

Deutsche Telekom is looking into ways to preserve its dividend, while re-investing in the United States after its $39 billion deal to sell its T-Mobile USA unit to AT&T (T.N) collapsed last year.

As part of a breakup package from AT&T, Deutsche Telekom received $3 billion in cash and mobile spectrum, which it said it would use to offer data services.

The Bonn-based group said in February it would increase its network investments in T-Mobile USA by about $1.4 billion over the next two years. T-Mobile USA said it would spend a total of $4 billion on the LTE upgrade over time.

Investment bankers in the telecoms sector said last year the German telecom provider could be forced to sell its stake in Britain’s biggest mobile company Everything Everywhere, a 50-50 joint venture with France Telecom FTE.PA.

Deutsche Telekom shares were up 0.8 percent higher at 8.62 euros by 3:22 a.m. Eastern Time, broadly in line with a 0.7 percent stronger STOXX Europe 600 Telecommunications index .SXKP.

Reporting by Harro ten Wolde; Editing by Mike Nesbit and Mark Potter

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