Article Abstract:
Independent figures from investment bank BZW values Germany's Deutsche Telekom AG at between $17 billion and $36 billion. The estimate for the telecom company, which carries a debt burden of $67 billion, is below the market forecast of some $45 billion. The prime cause of the company's debts is its investment in a digital telephone network in Eastern Germany. Telekom is permitted to sell half of its existing share capital via an initial public offering in November 1996.
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Article Abstract:
Deutsche Telekom's initial public offering (IPO) is expected to be a landmark for the equity market in Germany, as there are enthusiastic rates of registrations for the shares. However there is concern amongst institutional investors about the company's level of debt, although BZW, a commentator on the stock, claimed that the high debt level is tax efficient. All applicants applying for the first 300 shares will be allowed a price discount and a loyalty bonus.
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Article Abstract:
The second-largest initial public offering in the world has been completed with the sell-off of German telecommunications company Deutsche Telekom. Some 20 billion German marks were raised which will be used to reduce the company's debts, which total $67 billion. The success of the venture, which saw shares rise on the first day of trading, is set to encourage other European privatizations, including Spain's Telefonica and France Telecom.
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