DT and T-Online’s ‘cheap’ re-integration held up by shareholders

30 Nov 2005

Deutsche Telekom (DT) is appealing against a German court ruling that looks set to delay the completion of its agreed merger with partly owned internet unit T-Online. Darmstadt District Court ruled that DT’s reintegration of T-Online could not be completed until objections from dozens of dissident T-Online shareholders were resolved. DT, which plans to buy back T-Online’s shares for a third of the price at which they were spun-off in 2000, says the merger is a top priority as it wants to step up plans to expand triple-play internet, telephony and TV services. But the rebel shareholders say its offer of EUR8.99 per share, or 0.52 DT shares per T-Online share, unfairly undervalues T-Online.

Germany, Deutsche Telekom (DT), T-Online