DT mulls eastern Europe acquisitions

28 May 2013

German telecoms giant Deutsche Telekom (DT) is looking to boost its position in eastern Europe through the potential acquisition of two companies in the region, The Wall Street Journal cites several people with the matter as saying. According to three unnamed sources, DT is reportedly in talks to purchase Warsaw-based GTS Central Europe from a consortium of financial investors, which includes Columbia Capital, M/C Venture Partners and Innova Capital, for around EUR600 million (USD776 million). GTS owns and operates a fibre-optic and data-centre network throughout central and eastern Europe, including Hungary, the Czech Republic and Slovakia. DT is also considering the purchase of the remaining 40% stake of its T-Mobile Czech Republic unit that was recently put up for sale by private equity firm Mid Europa Partners (MEP), one of the people said. DT’s preferred option, it is claimed, would be for another financial investor to assume MEP’s stake, but the Bonn-based telco is ready to buy the holding should an unwanted suitor emerge.