German internet service provider QSC has ended its exploration of strategic options for its DSL network, which included a potential sale.
Cologne-based QSC’s share price fell more than 7% on the back of the news.
On 18 December 2014, the company…
German internet service provider QSC has ended its exploration of strategic options for its DSL network, which included a potential sale.
Cologne-based QSC’s share price fell more than 7% on the back of the news.
On 18 December 2014, the company said in a regulatory filing that it was considering a sale of the network, responding to a report in Manager Magazin, which suggested larger German group United Internet was shaping up to buy it.
Today, QSC said two factors had made it change its mind and end the sale process. Specifically, it said new opportunities are arising as a result of a change in the competitive situation in the business customer market, and that owning its own network is important for its cloud strategy.
The acquisitive United Internet agreed to buy smaller German fibre operator Versatel last September for an enterprise value of €947m, and has made it clear it is looking to play a part in the consolidation of Germany’s broadband market.
On 26 March United Internet’s CEO, Ralph Dommermuth, reiterated that his company was keen to make more acquisitions like Versatel.
However, Dommermuth has made it clear he sees the future in optical fibre as opposed to DSL.
