The rumor is that Deutsche Telekom may be looking to exit the British market by selling its 50% stake in Everything Everywhere. The joint-venture was established with France Telecom’s Orange, which in turns owns the other half of the company.
According to Bloomberg News, German telecom giant is still in early stages of deciding whether to take this road or not. The company has yet to hire investment banks and any decision on an exit is unlikely before later this year. In the meantime, Deutsche Telekom is focuses on improving operational performance.
Everything Everywhere, which is estimated to be worth around $15.6 billion, secured new banking facilities of $1.39 billion to refinance part of the $1.94 billion shareholder loan provided equally by its parent companies, Deutsche Telekom and France Telecom.
The way I see it, British market is pretty saturated at this point and focusing on developing countries instead could prove as a winning strategy. Then again, mature markets are cash cows for major player like Deutsche Telekom. We’ll see where this goes…
[Via: CellularNews]