Deutsche Telekom to finalise PTC deal this week: Globe to go by year-end

25 Sep 2003

Deutsche Telekom (DT) [NYSE: DT] Chief Financial Officer Karl-Gerhard Eick says his company hopes to sign a final deal for the EUR1.1 billion acquisition of a 51% stake in Polish mobile operator Polska Telefonya Cyfrowa (PTC) this week, and plans to offload its 24.8% interest in Filipino cellco Globe Telecom by the end of the year. DT is in ongoing talks with Ayala Corp and Singapore Telecom International about its stake in Globe – the three companies held talks earlier this year, but failed to reach an agreement before the August deadline – and Eick is quoted as saying he is confident that matters will be resolved this year.

Regarding the PTC deal, Eick says that he is confident that it will be completed within days. DT, which already holds 49% of the Polish mobile operator, agreed terms ‘in principle’ with PTC’s other shareholders Vivendi Universal, Elektrim and Ymer earlier this month and was ready to sign a final deal last Friday. Vivendi is set to receive EUR691 million for its interest, while Elektrim and Ymer will get EUR400 million and EUR9 million respectively. Eick has also ruled out the possibility of DT chasing other acquisitions in central and eastern Europe, saying the German giant was ‘not in acquisition mode’.