Government sells 6% of DT

12 Oct 2004

German state-owned development bank Kreditanstalt fur Wiederaufbau (KfW) has sold 6.3% in shares and warrants of the country’s dominant fixed line operator Deutsche Telekom (DT) for EUR4.5 billion (USD5.6 billion). The shares were put on offer at between EUR15.05 and EUR15.2 apiece. Before the sale KfW held a 16.7% stake in the telco on behalf of the state; the disposal takes its holding down to 10.4%. The government holds a further 26.1% directly in DT, although it too is looking to cut its stake. DT hopes that the transaction will help its stock to recover in line with its recently improved operating performance.