In a new departure, Irish investors are being given the opportunity to invest in Deutsche Telekom, one of the biggest companies in Europe.
NCB Stockbrokers and Ulster Bank have been appointed to handle the Irish element of a pan-European retail share offering by Deutsche Telekom. This is the first retail share offering across all euro-zone countries and more than 256 million new shares will be sold as part of a fund-raising exercise by the German telecoms group.
The exact price at which the shares will be sold will be decided next month. Based on Deutsche Telekom's current share price, the 256 million new shares would be worth €9.8 billion (£7.7 billion).
Deutsche Telekom has stated that the shares will be offered on equal terms through a public offer across all euro-states and that all retail investors applying through Ulster Bank or NCB in Ireland will be eligible for incentives in the form of a price discount and bonus shares.
There will be a minimum investment of 50 shares (currently worth €1,925 or £1,516) with no maximum size put on orders.
The retail offer closes on June 24th, pricing and allocations will be decided on June 26th/27th and trading will begin on June 28th.
Telekom wants the new shares to raise cash for acquisitions but the outlook had dimmed in recent weeks. Its plan to merge with Telecom Italia was unsuccessful and pulled its stock to a three-month low.
