Deutsche Telekom (DT) has told shareholders at today’s AGM that it is not looking to sell subsidiaries. Speaking at the meeting in Cologne, Germany, CEO Rene Obermann downplayed chances of a full scale disposal of T-Mobile USA. “A complete sale…
Deutsche Telekom (DT) has told shareholders at today’s AGM that it is not looking to sell subsidiaries.
Speaking at the meeting in Cologne, Germany, CEO Rene Obermann downplayed chances of a full scale disposal of T-Mobile USA.
“A complete sale like the one to AT&T is considered unlikely,” he told investors.
Following the collapse of the US$39bn merger between AT&T and T-Mobile USA in late 2011, DT has been exploring options for its US operator.
“We continue to look for a long-term solution to improve earnings in our US business,” Obermann said.
Recent reports have claimed that T-Mobile USA is considering a merger with MetroPCS, while analysts have suggested the operator might consider an IPO.
T-Mobile USA is currently investing US$4bn to build an LTE network that will be able to support 4G, and is also in the process of a sale-and-leaseback of its 37,000 towers to generate capital.
Last week, DT CFO Timotheus Hottges said the company had “no need” to sell T-Mobile USA and that the break up fee and spectrum from the collapsed AT&T deal gave its US operator a “clear path” to operating independently and offering 4G.
CFO denies Everything Everywhere exit talk
Meanwhile, Hottges today echoed Obermann’s comments and reportedly said DT has no plans to sell any of its units, nor does it have a list of subsidiaries it would like to sell.
Hottges denied DT plans to exit Everything Everywhere, its UK joint venture with France Telecom, as widely speculated by analysts, Reuters reported.
The report cited Hottges as saying DT wants to participate in the development of Everything Everywhere’s planned network upgrade.
