Deutsche Telekom has announced plans to sell non-core assets worth up to 8.5 billion euros ($8.6 billion) to help cut its debt pile to three times core earnings, or 50-53 billion euros, by the end of 2003.
The disposals come on top of other steps new Chief Executive
Kai-Uwe Ricke has announced to tackle a staggering 64 billion
euros of debt, such as slashing investments and scrapping the
1.6 billion-euro dividend payout.
As far as the real estate divestments are concerned, Deutsche Telekom wants to sell over 15,000 sites, from simple roadside masts to landmark buildings such as Frankfurt´s giant 'Asparagus' television tower.
The divestments of its 10 percent share in T-Online and 10.9 percent share in Eutelsat hava been concluded in the meantime. Total revenue was some EUR 930 mln, partially in cash, partially in shares.
Amongst other further possible divestments are its cable assets (EUR 2 bln), real estate (EUR 2 - 4 bln), DeTeMedien (EUR 1 bln) and Deutsche Funkturm (up to EUR 4 bln).
(sources: Deutsche Telekom, WestLB Panmure, Sal. Oppenheim,
Dresdner Kleinwort Wasserstein, Reuters)