SHARES in German telecommunications group Deutsche Telekom reached a 19 per cent premium yesterday after Europe's biggest ever share launch got off to a rip roaring start amid fevered buying which later spilled over to Wall Street.
Shares in Europe's leading telephone company burst on to the Frankfurt stock exchange at a 16.5 per cent premium. They then surged further in floor trade to close at 33.90 deutschmarks (£13.50), compared with the issue price of DM28.50, though they cooled a touch in post bourse computerised trading.
The Frankfurt bourse exploded into a frenzy of activity and more than 25 million shares changed hands in the first 20 minutes. By the end of the day, trading volumes soared to nearly 38 million shares.
Telekom's chairman, Mr Ron Sommer, and the German Finance Minister, Mr Theo Waigel, waded into the crowd with broad smiles on their faces - happy with the instant success of their privatisation of just over 25 per cent of the state controlled giant.
The chief executives of Germany's leading banks - Deutsche Bank AG and Dresdner Bank AG - who had coordinated the global listing stood on stairs overlooking the trading floor evidently pleased as new life seemed to pour into Germany's stock market.
Shares in Telekom, only the second German company after Daimler Benz AG to list shares in New York, later opened on the world's largest stock market at $22 1/8 (£13.24), up from the issue price of $18.89.
They will join Germany's DAX index of 30 blue chips on Tuesday.
