Deutsche Telekom Seeks Buyer for German Cable-TV Units

15 May 2002

Deutsche Telekom is hanging an official ‘for sale’ sign over the six German regional cable-TV systems it was barred from selling to Liberty Media.

In February, Germany’s Cartel Office blocked Liberty’s €5.5 billion ($5bn; £3.4bn) bid for the systems, arguing that the acquisition of 60% of the nation’s cable market would give the US firm too much control [WAMN: 26-Feb-02].

Since then, DT is understood to have been approached by a number of private equity and financial investment groups, though not by any media firms.

However, it is not expecting to reap the generous dividends dangled under the Malone deal. Offers for the Bavarian system are believed to be in the region of €800 million to €1bn, around half the price Liberty would have paid.

One tactic DT is considering to boost its takings is to split the systems into two or three regional groupings and sell them separately.

N M Rothschild, the investment bank handling the sale, has asked firms with an interest in the systems to form consortia and announce which region they plan to bid for. An invitation-only auction will be held in June, with DT hoping for two or three bidders per region.

Data sourced from: Financial Times; additional content by WARC staff