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DEUTSCHE TELEKOM CFO TO WRITE DOWN VOICESTREAM, CAPITAL SAYS

Discussion in 'Wireless News' started by Dukedog, Oct 31, 2002.

  1. Dukedog

    Dukedog Senior Member
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    BYLINE: Matthew Miller in the Berlin newsroom (49 30) 726 26 2809, or at mtmiller@bloomberg.net. Editor: Sims.

    DATELINE: Bonn

    BODY:
    Deutsche Telekom AG's Finance Chief Karl-Gerhard Eick wants to write down the value of the unit formerly known as VoiceStream Wireless Corp. by 10 billion euros ($9.82 billion), German magazine Capital said, citing no one.
    Eick and Deutsche Telekom board member Kai-Uwe Ricke are working to merge the unit, now called T-Mobile USA Inc., with larger rival Cingular Wireless to create the biggest U.S. cellular operator, Capital said in a faxed preview of tomorrow's edition.



    In return, Deutsche Telekom would receive 6 billion euros to reduce its 64.2 billion euros in debt and 25 percent of the newly formed entity, the magazine said. The former German monopoly, which paid $35 billion for VoiceStream last year, would also save 4 billion euros in U.S. investments, the magazine said.
    Eick is also considering writedowns of U.K. and Dutch mobile holdings, as well as the value of wireless licenses the company has purchased for about 15 billion euros in the past two years. The writedowns would lead to a full-year loss of more than 10 billion euros at the Bonn-based company, Capital said.

    The success of the merger talks will ensure that both Eick and Ricke stay in the running to become the new Chief Executive of Deutsche Telekom, the magazine said. If the negotiations fail, interim CEO Helmut Sihler will name an external candidate CEO by the beginning of December, Capital said.
     
  2. Matt

    Matt Twin girls!
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    Sounds like a decent amount for a writedown. Takes the value down to about $20B IIRC. I'd like to see DT get larger than a 25% share though.....
     
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  3. Dukedog

    Dukedog Senior Member
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    I'm sure you would like to see that, it probably will give your investment a better rating.
     
  4. pfp

    pfp Senior Member
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    Yay, someone gave out real news information on how this is working, not just random speculation. Still doesn't tell us the likelihood (has fingers crossed, waiting for the word to be "YES")

    Now my real question: IF this happens, how long until one of the company's stores start disappearing, changing their names, or something such??

    P
     
  5. aiwapro

    aiwapro Silver Senior Member
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    IF this happens, hopefully Cingular stores will disappear. T-Mobile US can't go through another name change.
     
  6. Matt

    Matt Twin girls!
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    A personal investment of mine? I don't own enough shares to care about DT really..... I cashed out of the old VSTR a long time ago....I had Aerial shares.
     
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  7. Damian7132

    Damian7132 Member

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    This deff puts new light on the maps i have seen which show the New Cingular Prefered Nation on GSM only. This map rival Verizons as far as coverage.Matt you should see this map.That is all iam going to say on this matter though intill it is resolved.
     
  8. Matt

    Matt Twin girls!
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    Damian, whatever map you have for GSM would have to include T-Mobile coverage IMO. Even if Cingular had every license they own GSM, it would only cover 81% of the population, since that is all the licenses they own. T-Mobile owne licenses to 95 or 96%, and they still have some buildout to do..... Rivaling Verizon's coverage would have to include analog, too....
     
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  9. jmccrane

    jmccrane Bronze Senior Member
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    Are you sure you didn't look at the map for the GSM/TDMA combo? I know that the Nokia 6340 is back and they're offering plans to take advantage of both networks. GSM doesn't come close to rivaling Verizon (or Sprint, or Nextel) yet.
     
  10. Damian7132

    Damian7132 Member

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    your right it is the TDMA GSM combo sorry but thanks for the clarification i only saw it for minute a friend showed it to me and he didnt really give me an explanation.
     
  11. ZaphodB

    ZaphodB Signal Go Down De Hole...
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    While I don't like the idea of T-Mo being bought out by Cingular, if it did happen, I'd not mind getting a GAIT phone (or a fake-GAIT phone like the S46) and being able to use the GSM *or* the TDMA *or* the AMPS.
     
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  12. michiganbuckeye

    michiganbuckeye New Member

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    The name that will disappear is T-Mobile not Cingular. T-Mobile is small potatoes next to Cingular, and since they have only been known by that name for a few months then it won't make much difference to change again. Maybe they will come up with a new name for the new company.
     
  13. aiwapro

    aiwapro Silver Senior Member
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    A new name for the company would be better.

    However, what would really be great, is if T-Mobile was to not merge at all, which could happen.
     
  14. Guest

    Guest Guest

    25% and 6 billion euro?

    In the jear 2000 Deutsche Telekom alone paid 5 billion euro as initial cash infusion for voicestream's network expansion and got only 10% of voicestream in return.

    In 2002 it's a different situation but this deal would be a pity for Deutsche Telekom. 6 billion - it's "nothing" in comparison to what Deutsche Telekom paid and is willing to pay for East-European telecom incumbents. And 25% is also a pity, too.

    ----------------------------------------
    Jesus Christ - trust in him!
     

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