Deutsche Telekom unhappy with offers

The three bids for Deutsche Telekom's cable networks range from €1.5 billion to €1

The three bids for Deutsche Telekom's cable networks range from €1.5 billion to €1.8 billion, much less than the German telecommunications giant was hoping for, the business daily Handelsblatt reported today.

Deutsche Telekom, which has had difficulties in selling its networks, said at the end of last month it expected to raise €2.5 billio to v3.5 billion from the sale.

That range was much lower than the initial target price of €5.5 billion. Deutsche Telekom hoped to substantially reduce its net debt with the sale.

Following the due diligence examinations, only three consortia are still interested and are scheduled to submit firms offers by Thursday, the newspaper said.

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The three consortia are Goldman Sachs in conjunction with Apax Partners, US cable operator Liberty Media in conjunction with private equity firms Apollo and Blackstone and BC Partners and GMT. Deutsche Telekom had previously said it expected five to six offers.

AFP