Germany's phone giant is bracing for invaders
Article Abstract:
Germany's state-owned Deutsche Telekom AG is facing competition in its market for the first time and the public is going public with one of the largest stock offerings in history. The government is selling 20% of the company in its initial offering, and expects to raise $10 billion. This would place the company's current value at $50 billion. A second offering in 1998 is expected to raise another $10 billion. The move to open Germany's telephone markets to competition is the result of customer demand. Germany's telephone rates are among the highest in the world, its long-distance rates are twice as much as those in the US. The company overcharged 11 million customers on New Years Day 1996. All 15 countries in the European Union are opening their telephone markets to competition on Jan 1, 1998. Industry observers question Deutsche Telekom's ability to adapt to a competitive environment.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Phone talks in Europe come under fire
Article Abstract:
Italian government officials, shareholders and competitors attack the planned merger of Deutsche telekom and Telecom Italia, on concerns that Germany has not given strong enough assurances that it will reduce its stake in Deutsche Telekom. Top business leaders in Italy appear to show support for a rival, unsolicited bid by Olivetti S.p.A. Shares of legal takeover vehicle Tecnost S.p.A. have been bid up. Deutsche Telekom plans to float a huge new stock offering to dilute the German government's 72 percent share in the firm. But Germany has so far insisted on retaining its voting rights, and will not agree to a time framework for selling its stake. France Telecom, Deutsche's partner in Global One, complains that it was not consulted before Deutsche Telekom made the strategic move to bid for Telecom Italia.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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