Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Telekom Float Nets $9.6Bln




FRANKFURT, Germany -- More than 250 million new shares of Deutsche Telekom AG started trading Monday, raising about 10 billion euros ($9.6 billion) for the German telecommunication giant's international acquisition plans.


The new shares, offered at Friday's closing of 39.50 euros ($41.16), opened up 1.3 percent Monday amid heavy trading in the first pan-European stock offering. Telekom said the issue was twice oversubscribed, partly due to high demand from European retail investors.


About 70 percent of the orders came from Germany, the rest from the 10 other euro bloc countries, Telekom said.


Telekom, seeking to become a major player in global telecommunications companies, made its first major cross-border bid this year by attempting a friendly merger with Telecom Italia SpA, Italy's former telephone monopoly. But it lost out to Olivetti SpA, which pulled off a hostile bid.


Undeterred, Telekom chairman Ron Sommer repeated Sunday that the new cash will be used for possible acquisitions and mergers.


Chief financial officer Joachim Kr?ske said the group will announce a deal at the end of the summer similar to this year's takeover of Max.mobil, Austria's second-largest mobile phone operator.


In February, Deutsche Telekom increased its stake in Max.mobil to 81 percent from 25 percent for an undisclosed sum.


Kr?ske said the new purchase would boost sales by 2 billion marks ($1.1 billion).


Although the government was not selling any of the shares it still holds in the former telephone monopoly, the new stock issue effectively decreases its stake from 72 percent to about two-thirds, a Telekom spokesman said.