Deutsche Telekom Dumps Cable

BONN, Germany -- Deutsche Telekom AG (NYSE: DT - news) today announced that it has signed a contract for the sale of further six of its nine regional cable TV companies to Liberty Media Corporation. Deutsche Telekom is selling to Liberty Media its entire interest in these six regions including Deutsche Telekoms's Level 4 operator Deutsche Telekom Kabel Services GmbH (DeTeKS). In addition, Deutsche Telekom is selling Media Services GmbH (MSG), an IT service Provider and operator of a neutral digital distribution platform in Germany. The aggregate purchase price is approximately Euro 5.5 billion. The transfer of operational responsibility will follow the completion of the antitrust process. "As of today, Deutsche Telekom has achieved its objective of splitting off its cable TV activities," said Gerd Tenzer, Member of Deutsche Telekom's Board of Management, responsible for Production and Technology. "As a result of this agreement, we are now even more effectively positioned to focus on our four pillar growth strategy. The sale of all our cable TV assets is an important part of our non-core assets disposal program. The proceeds will be used for debt reduction."Deutsche Telekom AG Liberty Media Corp.