Deutsche Telekom 'welcomes' sale of 4.5% stake to Blackstone by KfW

April 24, 2006

1 Min Read

BONN, Germany -- Deutsche Telekom expressedly welcomes today's announced sale of approximately 192 million shares, which represents about 4.5 percent of Deutsche Telekom's outstanding shares, from Kreditanstalt fuer Wiederaufbau (KfW) to the private investment group Blackstone. CEO Kai-Uwe Ricke commented: "We are very pleased to have gained in Blackstone a shareholder with demonstrated expertise in the telecommunications sector. This also implies a further broadening of the shareholder base of Deutsche Telekom." As a result of this transaction, the combined share of the German government and KfW will decrease to approximately 33%.

As part of a lock-up agreement with KfW, Blackstone has committed itself to hold the acquired shares for at least two years. "This lock-up agreement in connection with the statement, that KfW is not to sell any Deutsche Telekom shares for at least one year and that the German Government and the KfW intend to remain the largest Deutsche Telekom shareholder, signalizes confidence in the company and clearly addresses the so-called stock overhang issue," Karl-Gerhard Eick, CFO of Deutsche Telekom concluded.

Deutsche Telekom AG (NYSE: DT)

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