The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Watch those core assets

Deutsche Telekom hasn't been that successful in 2002 in making asset disposals or cutting debt. The sale of its cable businesses, for example, has been delayed and the price it is negotiating is unlikely to reach the e2.5 billion it predicted halfway though the year.

But grappling with net debt of a mere e64 billion, DT treasurer Gerhard Mischkle has been at pains to point out that delays to non-core asset disposals will not hold up debt reduction plans.

He told an investor conference in December that not only was the company going to raise at least e2.2 billion from asset disposals but they could in fact amount to as much as e4.8 billion if everything went smoothly. "If the non-core asset disposals go ahead as planned, we won't need funds for the whole of 2004," he said. To prove the point, that day DT raised e732 million through a sale of a 10% stake in T-Online.

All of this sounded quite good - as did the net debt target of e50 billion by the end of 2003 - until Mischkle was followed to the podium by Merko Tigelaar.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree