Deutsche Telekom Examines IPO Option For UK Joint Venture

By Archibald Preuschat

FRANKFURT--German telecommunications company Deutsche Telekom AG (DTE.XE) Friday said it is examining the option of an initial public offering for Everything Everywhere, or EE, which it jointly owns with France Telekom (FTE.FR).

"An IPO is a possibility to realize part of the joint venture's increase in value," Deutsche Telekom Chief Financial Officer Tim Hoettges said. He added however that the company isn't forced to take this step.

The joint venture, which includes the German company's T-Mobile UK unit and France Telecom's Orange segment, has been in existence for about three years and is the largest British mobile phone company in sales and customer numbers.

France Telekom's CFO Gervais Pellissie said in November that they are examining the option of an IPO for EE and that the step could be taken at the end of next year.

Deutsche Telekom Chief Executive Rene Obermann didn't want to commit to a timetable but said that, "we wouldn't talk about it today if we planned it in a few years time." Mr Hoettges added that an IPO would strongly depend on the market environment.

Mr Obermann excluded unilateral action of the joint venture partners, saying Deutsche Telekom has had good experiences with the German-French partnership and wants to keep it that way in the future.

An IPO could also be on the cards for digital classifieds portal Scout to support growth potential without burdening Telekom's balance sheet too much.

Write to Archibald Preuschat at [e-mail]

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