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. Last Updated: 07/27/2016

Deutsche Telekom Launches Aggressive Pitch

BONN -- German telecommunications giant Deutsche Telekom on Friday began the hot phase of what is expected to be Europe's largest-ever share listing by promising investors generous dividends and strong growth.


Chief finance officer Joachim Kroeske presented the company's preliminary sales prospectus in advance of its listing next month, which could raise 13 billion to 17 billion Deutsche marks ($8.5 billion to $11.1 billion), depending on the price and number of shares.


Trading in Deutsche Telekom on stock exchanges in Germany and New York will begin Nov. 18 and start a day later in Tokyo.


The issue will dwarf Germany's previous largest offering, the privatization of Veba AG, and could prompt traditionally conservative German private investors to put more money into shares.


"We have done everything we could for private investors within the realm of possibility for an investment in stocks," Kroeske told a news conference at the company's head offices in Bonn.


Unlike British Telekom, which was sold to the public more than 10 years ago, Deutsche Telekom will immediately be set out in a harsh competitive environment.


Kroeske said Deutsche Telekom would cut its huge mountain of debt to 65 billion marks, from 107 billion, by the year 2000. The company also plans to cut its work force to 170,000 employees in 2000, from 230,000 when.