Telekom may delay mobile IPO

Click to follow
The Independent Online

Deutsche Telekom may be forced to delay the flotation of its T-Mobil cellular phone division until it has completed the £37bn purchase of VoiceStream Wireless of the US.

Deutsche Telekom may be forced to delay the flotation of its T-Mobil cellular phone division until it has completed the £37bn purchase of VoiceStream Wireless of the US.

The phone group, still majority-controlled by the German government, is facing regulatory and political obstacles to the VoiceStream deal, which could delay completion until well into 2001. The company is taking advice about whether financial information concerning the US company needs to be included in the mobile unit's prospectus.

"We're in talks with the Securities and Exchange Commission about whether we need to include VoiceStream in the initial public offering prospectus and in what manner," a spokesman said. Due to the preparations to include VoiceStream details, the October float could be pushed back.

Deutsche Telekom, which owns One2One, is selling shares in T-Mobile to raise funds for more acquisitions. The company also needs to fund third-generation mobile phone licences and new wireless networks.

Analysts have expected Deutsche Telecom to raise £5bn to £6bn from the mobile flotation.

Comments