Deutsche Telekom AG (DT) on Monday declined to confirm a report giving the value of properties it is seeking to sell off, though the company confirms it is on a campaign to dispose of non-core holdings.
The German newspaper “Welt am Sonntag,” citing unnamed sources, reported Sunday that DT plans to dispose of businesses and real estate worth US$12.8 billion to 17.4 billion, including its stake in U.S. telecommunications company Sprint Corp., and German regional cable television companies. A further influx of cash is expected as DT spins off its mobile telephone subsidiary T-Mobile International AG.
“We don’t comment on the number,” said DT spokesman Ulrich Lissek, “But on the other side we have always said we would like to sell everything that’s not our core business – purely telecoms services, but not real estate, cable, or the stake in Sprint. So this is an old message, and the numbers are pure speculation.”
DT has come under renewed scrutiny after Standard & Poor Corp.’s bond rating service issued a warning Friday, stating that the outlook for DT remains negative. While “no action was taken” on the bond rating, which remains at single-“A”-minus for long-term and “A-2” for short-term debt, “the rating is under pressure,” said spokeswoman Agn