Menu
Lower bids for telecom cable network

Lower bids for telecom cable network

After the sale of the Telekom cable network to Liberty Media failed due to RegTP requirements, the whole thing is now entering the next round. While Liberty Media wanted to pay 5.5 billion euros for the cable network, the five interested consortia apparently have less money.

Telekom will therefore have to adjust to lower revenues. According to the Financial Times Deutschland, referring to the bidder circles, the five interested parties have offered Telekom 2 to 3 billion euros so far, but Telekom could raise the price even further in the sales talks. This, of course, throws Telekom's plans to reduce the current mountain of debt from 66 billion euros to 50 billion euros by the end of 2003. In addition to the proceeds from the sale of the cable network, real estate sales and strict austerity measures should help to reduce debts. The bidding consortia consist of the investor group Goldman Sachs Capital Partners with Primera, Providence Equity together with Apax Partners, CVC with Warburg Pincus, Hicks, Muse, Tate & Furst and BC Partners. Binding offers for the cable networks in the regions of Bavaria, Berlin/Brandenburg, Bremen/Lower Saxony, Hamburg/Schleswig-Holstein/Mecklenburg-Western Pomerania, Rhineland-Palatinate/Saarland and Saxony/Saxony-Anhalt/Thuringia are to be submitted by the end of September.