Sistema offers DT swap deal

30 Mar 2007

According to the Deutschland Financial Times, Russian holding company Sistema is offering to swap German incumbent telco Deutsche Telekom’s (DT) stake in Russian cellco Mobile TeleSystems (MTS) for its own holding in Hungarian incumbent Magyar Telekom. It was noted that the deal has little chance of success. Sistema has said repeatedly that it wishes to buy a stake in DT, but will not do so without the go-ahead from the German government, which holds 31% of the telco (15% directly and 16% via state-run bank KfW). At the start of this month, DT published a list of assets that it wished to sell. Magyar Telkom was conspicuous by its absence from this manifest. Neither DT nor Magyar Telekom have commented on the Russian approach.

Germany, Russia, Deutsche Telekom (DT), Magyar Telekom