A strategic review of Deutsche Telekom’s Eastern European operations is reportedly underway with the German incumbent considering selling its 61% stake in T-Mobile Czech Republic. The German telco is minded to either sell its mobile-only operations in…
A strategic review of Deutsche Telekom’s Eastern European operations is reportedly underway with the German incumbent considering selling its 61% stake in T-Mobile Czech Republic.
The German telco is minded to either sell its mobile-only operations in the region or to make convergent acquisitions to strengthen its market position, according to people familiar with the company’s thinking cited by the Wall Street Journal.
In its 2012 annual report the company valued its Czech stake at €1.75bn. It may sell its controlling interest due to regulatory changes in the country which will increase competition, the report said.
However, DT’s current CFO and incoming CEO Timotheus Hoettges may prefer to hang on to the stake so that the company’s international footprint is not diminished, one of the people cited in the report said.
DT could also look to acquire a fixed-line unit in Eastern Europe and has held talks with GTS Central Europe and Netia SA, according to sources cited in the article. Whether it pursues this will depend on the conclusions it draws from the strategic review.
GTS has operations across a number of former Eastern bloc countries while Netia only offers services in Poland.
Deutsche Telekom declined to comment on the report.
Board considers bringing forward Hoettges’ promotion
Meanwhile, according to a recent report in German business periodical Manager Magazin, DT is considering promoting Hoettges to CEO in the autumn already.
The article claimed that the former incumbent’s supervisory board would vote on an earlier than expected promotion at it’s annual strategy meeting, set to take place from 3 to 5 September in Warsaw, Poland.
Current CEO Rene Obermann plans to leave the company on 31 December. From January 2014 he will be chief executive of Dutch cableco Ziggo, and Hoettges was expected to take over from Obermann at the helm of Deutsche Telekom the same day.