Deutsche Telekom’s internet subsidiary T-Online yesterday confirmed that it is to buy Spanish ISP and portal in a cash and shares deal worth €550 million.

The deal had teetered on the brink of failure following last month’s resignation of T-Online chair Wolfgang Keuntje, whose exit followed a series of spats over international strategy with boss man Ron Sommer, chair of the parent company.

The purchase is T-Online’s first local base in Iberia where its German-located service already boasts 4.2 million Spanish and Portuguese subscribers. adds a further 2.3m to this figure.

News source: Financial Times