Deutsche Telekom called off plans to sell its troubled IT arm T-Systems after negotiations with parties interested in making the acquisition collapsed, Handelsblatt reported.
The German newspaper cited corporate and financial sources as stating Deutsche Telekom CEO Timotheus Hoettges is now pursuing a new strategy for T-Systems as it became clear it would not be able to reach a deal to sell the business any time soon.
It first emerged Deutsche Telekom was planning to offload T-Systems in 2021, after it decided to cut its losses on a business which had weighed on the group’s overall performance due to reduced spending in the sector.
Reports at the time suggested Deutsche Telekom had planned to commence talks with interested parties early this year, with the conclusion of a sale earmarked for the third quarter.
Deutsche Telekom has tried to improve the unit’s performance since 2019, operating it as a slimmed-down operation focused only on IT and digital services. However, the Covid-19 (coronavirus) pandemic had a big impact on sales, with orders reducing by 25 per cent during the health crisis.
Handelsblatt stated Deustche Telekom’s management is now looking at options to grow the business.Subscribe to our daily newsletter Back