Deutsche Telekom should weigh asset sale
Deutsche Telekom, Europe's largest telephone company, should consider selling or splitting off „non-core” assets such as real estate and the US wireless unit, an investor said.
The value of the T-Mobile USA unit isn't „properly reflected” in Deutsche Telekom AG's share price and the division doesn't generate „substantial” synergies with the group, Isle of Man-based Laxey Partners Ltd. said in a statement yesterday. In an October 25 letter to Deutsche Telekom supervisory board Chairman Klaus Zumwinkel, Colin Kingsnorth, a director of Laxey's Value Catalyst Fund, wrote he's concerned the German company's management isn't focusing its time and financial resources in the „highly competitive” telecommunications market.
„What are you going to do with T-Mobile USA?” Kingsnorth said in a phone interview yesterday. „Are you seriously considering selling it, floating it? Those are the issues we really want them to debate. We don't think there's much of a debate now.” Kingsnorth said Laxey owns more than €100 million ($128 million) in shares of Deutsche Telekom.
The Bonn-based company had a market value of €60.3 billion at yesterday's close. Deutsche Telekom „is currently spread too thinly outside Europe and partially within Europe to be able to create superior value with each of its assets in the long-term,” Kingsnorth wrote in the letter. (Bloomberg)
ADVERTISEMENT
Bourse Turnover Reaches HUF 181 bln in November
India's G20 Presidency, Dawn of New Multilateralism - Narend...
Production Resumes at Ganz's Szolnok Plant
TikTok Commits to Improved Consumer Communication in Hungary
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
