DT may sell UK asset if US deal fails

25 Nov 2011

According to Reuters, Deutsche Telekom (DT) may sell its 50% stake in UK joint venture Everything Everywhere if the German giant’s USD39 billion deal to sell T-Mobile USA to AT&T collapses, which now seems likely. The reports, which cite unnamed bankers familiar with the deal, say that failure to complete the transaction in the US will place DT under pressure from shareholders, with the company’s immediate priority being to preserve its dividend, but also having to find significant funds in order to invest in its US subsidiary. The stake in Everything Everywhere is regarded by many observers as DT’s only non-core holding large enough to be worth selling. However, formal talks over the fate of DT’s stake in Everything Everywhere are not yet believed to have taken place, and any possible sale is likely to be some way off, partly due to the new joint venture still being in the process of establishing itself.

United Kingdom, Deutsche Telekom (DT), EE