German government considering selling Deutsche Telekom stake

German government may sell Deutsche Telekom stake

12 NOV 2014

The German government is thinking of reducing its stake in Deutsche Telekom (DT), among other companies, according to a finance ministry document seen by Reuters, to cash in on high share values.

The government is currently under pressure to stimulate the country’s economy by increasing its spending.

It has a 31.7 per cent stake in DT – 14.3 per cent directly and 17.4 per cent through state bank KfW – worth approximately €17 billion.

The document, signed by finance minister Wolfgang Schaeuble, is to be approved by the cabinet on Wednesday (today), said the report.

Chancellor Angela Merkel’s government is hoping to balance the federal budget next year, and a sale of its stakes in companies like DT could help achieve this.

The government is also considering disposing of stakes in Deutsche Post and Deutsche Bahn.

Interestingly, the French government last month said it was looking to raise cash through asset sales, although its stake in Orange is not among the assets on the block, it said.

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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