Deutsche Telekom AG ADR(DTEGY)- OTCQX
  • Tue, Mar. 1, 9:38 AM
    • T-Mobile (NASDAQ:TMUS) is up 1.2% in early going after Deutsche Telekom (OTCQX:DTEGY) reportedly put any sale of its U.S. arm on ice, with a U.S. election on the way and spectrum auction dead period dead ahead.
    • Participants in the FCC's broadcast incentive airwaves auction, set to begin at the end of the month, won't be allowed to talk partnerships or mergers during bidding, which could last for months.
    • The German giant will wait for a more favorable environment before looking at another sale.
    • After a previous attempt to merge T-Mobile and Sprint (NYSE:S) went awry, consensus formed that the two would need to wait until a new post-Obama administration to give a tie-up another thought.
    | Tue, Mar. 1, 9:38 AM | 5 Comments
  • Fri, Jan. 15, 3:32 AM
    • The U.K. Competition and Markets Authority has approved BT's (NYSE:BT) £12.5B acquisition of EE unconditionally, stating the tie-up won't result in a substantial lessening of competition.
    • The full deal is set to close on January 29 when Deutsche Telekom (OTCQX:DTEGY) takes a 12% BT stake and Orange (NYSE:ORAN) takes a 4% share stake in the company.
    • A Deutsche Telekom representative is also expected to join the BT board imminently.
    | Fri, Jan. 15, 3:32 AM
  • Nov. 12, 2015, 11:54 AM
    • With Deutsche Telekom (OTCQX:DTEGY -0.5%) working on a sale of its T-Mobile Netherlands unit, private-equity firm Warburg Pincus is getting into the action with a bid, Reuters reports.
    • That would join bids coming together from Apax and CVC, with Bain Capital and Providence expected to jump in as well, for an asset valued up to €3B but that lags KPN and Vodafone in the market.
    • In February, Warburg had hired former DT CEO Rene Obermann, who had worked in the Dutch telecom market with another Warburg partner, Andrew Sukawaty, at cable company Ziggo. Sukawaty chaired Ziggo while Obermann was its CEO.
    • Ziggo now is owned by Liberty Global (LBTYA -0.6%), which itself could be bidding for T-Mobile Netherlands. A source says that Xavier Niel's Iliad (OTCPK:ILIAY) has no plans to bid.
    • Earnings have been sliding at the unit. Buyout funds estimate its core earnings to come to €450M next year, which would value the business at about 6.5 times EBITDA.
    • Previously: Private-equity firms prepare bids for Deutsche Telekom Dutch unit (Nov. 11 2015)
    | Nov. 12, 2015, 11:54 AM
  • Nov. 11, 2015, 11:14 AM
    • Private-equity firms are lining up bids for Deutsche Telekom's (OTCQX:DTEGY +1.2%) unit in the Netherlands, with Apax and CVC getting close to final offers, Reuters reports.
    • Bain Capital and Providence are also expected to get involved. The division could be valued at up to €3B.
    • P-E firms may have the inside line on bidding; Xavier Niel's Iliad (OTCPK:ILIAY) or Liberty Global (NASDAQ:LBTYA) could get involved, though Liberty already competes in the Netherlands with its Ziggo unit and is currently pursuing a purchase of Belgium's Base.
    • DT's operation is behind competitors KPN and Vodafone in the Dutch market.
    | Nov. 11, 2015, 11:14 AM
  • Oct. 28, 2015, 10:09 AM
    • BT Group (NYSE:BT) is up 3.5% in U.S. trading following the UK's provisional clearance of its £12.5B merger with mobile market leader EE.
    • The telecom giant had made its case to regulators for the takeover in early May. Opponents, particularly Vodafone (NASDAQ:VOD), have been vocal about the combination of the UK's biggest fixed-line telecom with its biggest mobile operator.
    • And despite a harder-line stance by EU Competition Commissioner Margrethe Vestager -- whose opposition led to TeliaSonera and Telenor calling off a Danish merger -- the EU's digital economy commissioner, Guenther Oettinger, thinks consolidation will continue to run: "I believe the consolidation process will continue - we have rather too many than too few companies in Europe."
    • As for Vestager's approach: "She sets a lot of store by variety of offerings, by competition, that's the one important factor. The other is that we need competitive companies who are big enough in the global competitive context."
    • Also up today: EE owners Orange (ORAN +0.5%) and Deutsche Telekom (OTCQX:DTEGY +1%).
    • Previously: TeliaSonera, Telenor call off Danish merger as regulators balk (Sep. 11 2015)
    | Oct. 28, 2015, 10:09 AM
  • Oct. 28, 2015, 4:16 AM
    • BT Group's (NYSE:BT) bid to acquire Deutsche Telekom (OTCQX:DTEGY) and Orange's (NYSE:ORAN) British wireless venture EE has been cleared by merger watchdogs, who found it would not cause significant harm to competition.
    • If the £12.5B transaction is completed, BT would control the biggest high-speed broadband network as well as the largest wireless operator in the U.K., letting it sell packages of mobile, TV, home phone and Internet services.
    | Oct. 28, 2015, 4:16 AM
  • Oct. 20, 2015, 11:57 AM
    • Deutsche Telekom (OTCQX:DTEGY +2.8%) is working with Credit Suisse on a possible sale of its Dutch unit, T-Mobile Netherlands, that could bring up to €5B ($5.7B), Bloomberg reports.
    • That would be 7-8 times the unit's EBITDA, which last year was €630M on revenues of €1.55B.
    • Deutsche Telekom gets more than two-thirds of revenues from Germany and the U.S., so a sale of its Dutch unit could bring funds to cut debt ahead of what could be an aggressive move for spectrum by T-Mobile U.S. (TMUS -1.2%) in the spring.
    • In an acquisition-rich environment, bidders could include John Malone and Liberty Global (LBTYA -1.4%) as well as private equity. Liberty Global bought Belgium's Base from KPN for $1.4B in April.
    | Oct. 20, 2015, 11:57 AM
  • Sep. 4, 2015, 1:44 PM
    | Sep. 4, 2015, 1:44 PM | 4 Comments
  • Jun. 22, 2015, 12:13 PM
    • With consolidation in the air, telecom players are trading significantly higher today Europe-wide.
    • Telefonica (TEF +4.5%), Telecom Italia (TI +1.9%), Orange (ORAN +8.2%), Vodafone (VOD +1.8%), KPN (OTCPK:KKPNY +5.5%), Deutsche Telekom (OTCQX:DTEGY +5.4%), Belgacom (OTCPK:BGAOY +2.7%), TeliaSonera (OTCPK:TLSNY +1.9%) and Pharol (OTCPK:PTGCY +8.5%) are all among firms getting a punch up today.
    • The richness of the proposed deal by Numericable-SFR (Altice, OTC:ATCEY) for Bouygues Telecom (OTCPK:BOUYY) -- at €10B, it suggests one of the highest regional industry EBITDA multiples (14.4x) in years -- may be lifting firms in a consolidation-friendly atmosphere, even with the hurdles this deal has to overcome.
    • French regulators have gone on the record against the deal, calling for investment: “Consolidation isn’t advisable for the sector,” says econ minister Emmanuel Macron. “Employment, investment and giving customers the best possible service should be the priority.”
    • In addition, a reluctant Martin Bouygues would need to be convinced to change his mind and sell.
    • Previously: Altice confirms Bouygues Telecom bid (Jun. 22 2015)
    | Jun. 22, 2015, 12:13 PM | 2 Comments
  • Jun. 17, 2015, 3:45 PM
    | Jun. 17, 2015, 3:45 PM | 9 Comments
  • Jun. 17, 2015, 8:48 AM
    | Jun. 17, 2015, 8:48 AM | 9 Comments
  • Jun. 12, 2015, 5:19 PM
    • Today in telecom consolidation speculation: While Dish Network (NASDAQ:DISH) and T-Mobile (NYSE:TMUS) have been talking about a deal with upsides for both (and shareholders have driven DISH up 2.6%, TMUS up 1.8% since word broke June 3), they aren't each other's only option.
    • And much of what transpires there depends on T-Mo parent Deutsche Telekom (OTCQX:DTEGY) and what it wants to do with an asset that can command top dollar as perhaps the last attainable big U.S. cell provider.
    • “They’re obviously controlled by a German company who has strategic initiatives, both in Europe and the United States, and they may not be in a position where they want to do anything," Dish chief Charlie Ergen said in a Bloomberg TV interview.
    • From Dish's perspective: It doesn't need to rush, as it's making free cash flow and has time to sit on its large spectrum stockpiles yet. Ergen could look for a sale to Verizon (NYSE:VZ), or break the spectrum off into a separate company with a sale-leaseback. In any case, many deals that seemed well under way have been kiboshed by the mercurial Ergen.
    • Fron T-Mobile's: Deutsche Telekom is reportedly worried about an overvalued Dish and getting too much of that stock. T-Mobile could probably command $49/share in a sale, or a 25% premium, says Gabelli's Sergey Dluzhevskiy. One company that wouldn't blink at that price would be Comcast (NASDAQ:CMCSA) in its own quad-play grab.
    • Altice (OTC:ATCEY), which considered a run at Time Warner Cable (NYSE:TWC), could be a long-shot for T-Mobile, or even Charter (NASDAQ:CHTR). And with AT&T expanding in Mexico, how interesting would it be if América Móvil (NYSE:AMX) pumped up its U.S. presence with Big Magenta?
    | Jun. 12, 2015, 5:19 PM | 6 Comments
  • Jun. 12, 2015, 9:19 AM
    • As Liberty Global (NASDAQ:LBTYA) and Vodafone (NASDAQ:VOD) talk about swapping assets in Europe, both companies think increased telecom competition has made Europe's regulators more relaxed about consolidation issues.
    • "We see that big telecoms providers are allowed to merge," Manuel Cubero, chief executive of Vodafone's Kabel Deutschland told Reuters in Germany. "We see that politicians support this trend in order to strengthen the ability of companies to invest."
    • Germany is one epicenter of the swaps discussion as the two companies have heavy overlap in the region. It's Vodafone's largest market by sales and likely hopes to get Liberty cable operations there in any swap -- "The more we grow, the better we can compete with Deutsche Telekom (OTCQX:DTEGY) in broadband," says Cubero -- but neither firm may be willing to part with UK business.
    • "The Commission's view of consolidation in the telecom sector in Europe has changed," says Lutz Schueler, head of Liberty's German business Unitymedia.
    • Vodafone's Kabel Deutschland and Liberty's Unitymedia are the No. 1 and No. 2 cable operators in Germany respectively. The country has 29.6M broadband connections, but 23.3M of those are via phone lines and more than half of those controlled by Deutsche Telekom.
    | Jun. 12, 2015, 9:19 AM | 2 Comments
  • Jun. 11, 2015, 5:45 PM
    • Dish Network (NASDAQ:DISH) is talking to banks about funding a bid to acquire T-Mobile (NYSE:TMUS), to the tune of $10B-$15B in borrowing for the cash part of the deal, The Wall Street Journal is reporting.
    • T-Mobile is up 3.6% after hours; Dish is up 1.7%.
    • The deal's in early stages, but as discussed, the stock portion would leave T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) with a significant minority stake in the combo.
    • No word on how much Dish would pay for T-Mobile, but talking with banks shows it's moving forward.
    • In the previous discussions, one key issue already seems sorted out among the personality-laden leaders: Dish CEO Charlie Ergen would serve as chairman, while T-Mobile's John Legere would be CEO.
    | Jun. 11, 2015, 5:45 PM | 12 Comments
  • Jun. 9, 2015, 9:33 AM
    • With merger talks ongoing between T-Mobile (NYSE:TMUS) and Dish Network (NASDAQ:DISH), Timotheus Höttges, CEO of Deutsche Telekom (OTCQX:DTEGY) -- T-Mobile's controlling shareholder -- is reportedly more interested in merging T-Mobile spectrum (TMUS -1.2%) with Sprint's (S +1.1%) than in the Dish combo, The New York Post reports.
    • The stance is centered in the idea of creating a valuable combination that would be more appealing for a sale to Comcast (NASDAQ:CMCSA), sources told the paper. Adding Dish Network to T-Mobile makes more sense in the future, but it would kill the chance of a sale to Comcast on regulatory concerns, the sources paraphrased Höttges as saying.
    • There's no word on how he feels about regulatory resistance to combining with Sprint (which reportedly killed such a merger last year).
    • He reportedly told investors at last week's RBC Capital Markets road show that the Sprint combination would create huge value in teaming up when the broadcast incentive spectrum auction begins in early 2016. Sprint and Dish Network both have swaths of spectrum that would help T-Mobile fill in gaps.
    • Previously: Telecom consolidation game may force Sprint's hand (Jun. 05 2015)
    • Previously: Dish Network, T-Mobile up on report of merger talk; Sprint slips (Jun. 04 2015)
    | Jun. 9, 2015, 9:33 AM | 27 Comments
  • Jun. 8, 2015, 10:16 AM
    • BT Group (NYSE:BT) ADRs are up 0.7% and the stock is up 0.6% in London following a report in The Telegraph that it's set to become a takeover target for Deutsche Telekom (OTCQX:DTEGY) amid the industry's merger mania.
    • The paper cited senior industry execs and London analysts with the report, which suggests intensity for a BT takeover will increase if Deutsche Telekom can successfully marry off T-Mobile to Dish Network.
    • That would mean T-Mobile's parent (DT owns two-thirds of T-Mobile U.S.) could reallocate billions to take part in Europe's consolidation wave.
    • BT is set to acquire EE, the UK's largest mobile operator, for £12.5B, which gives Deutsche Telekom an existing foothold: As one of EE's joint-venture partners, it gets a board slot and 12% of BT.
    • A deal may take time in coming: As part of the BT/EE deal, Deutsche Telekom can't exceed a 15% stake in BT for three years after the deal's completion.
    | Jun. 8, 2015, 10:16 AM | 2 Comments
Company Description
Deutsche Telekom (OTCQX: DTEGY) is one of Europe's leading telecommunications and information technology service companies. Deutsche Telekom is also the parent company of T-Mobile USA, one of four national wireless carriers in the U.S., with 33.7 million customers. In Europe, we are Germany's... More
Sector: Technology
Industry: Wireless Communications
Country: Germany