CALDEIRÃO DE BOLSA

Keyser Soze Escreveu:

21 Aug 2006 08:15 GMT

Deutsche Telekom shareholder German govt expects co's new strategy in autumn

FRANKFURT (AFX) - The German government, a major shareholder of Deutsche Telekom AG, expects that in autumn the company's executive board will present a strategy to improve profits Handelsblatt said, citing finance ministry sources.

"We still expect the Telekom board will present a strategy in autumn, one which will bring the company back to the forefront," the newspaper cited its source as saying.

Deutsche Telekom normally presents a two-year outlook whenever it publishes third quarter results in autumn.

The government, which holds a 31 pct direct and indirect stake in Deutsche Telekom, is represented on the company's supervisory board by the finance ministry.

On Aug 10, Deutsche Telekom had cut its operating income and sales forecasts for 2006 and 2007 as second quarter results missed expectations due to fierce competition in all three business areas -- mobile, fixed-line and business customer.

The German media has lately been rife with speculation that some of the company's influential shareholders, like US private equity fund Blackstone, do not want to extend the CEO contract of Kai-Uwe Ricke.

Focus weekly said the German government is also unhappy with the way the company's share price has dropped recently.

Ricke's CEO contract is due to expire in the autumn of 2007 and in Germany normal practice dictates that one year before a contract expires a decision should be made on whether or not to extend it.

Handelsblatt today cited DWS investment fund managing director Klaus Kaldemorgen as saying that changing the management board at this point would not be good for the company.

"We believe that it would be a mistake because a lot of time would be lost. Mr Ricke and his team understand the market and one has to give them the opportunity to do everything in the face of very tough competition," Kaldemorgen said.

marilyn.gerlach@afxnews.com

Equities: Vodafone (VOD LN) and T-mobile (DTE GY) discuss sharing, developing network.

23 Aug 2006 06:06 GMT

MARKET TALK: HSBC Cuts Deutsche Telekom Target Price
0606 GMT [Dow Jones] HSBC cuts Deutsche Telekom (DT) notional target price to EUR10.20 from EUR12.50. Brokerage has concerns about investment cuts, which it believes would threaten the company's German recovery plan. Furthermore HSBC says it sees no clear plan for business in the US. Keeps underweight rating. Shares closed at EUR11.57. (HAD)

Horaclito Escreveu:

mjaguiar Escreveu:Boa tarde a todos

Sendo novato nestas andanças do caldeirão já tenho alguns anos (bastantes mesmo) de investir alguns €€ na bolsa. Das que me deixaram mais "queimado" ( e não chamuscado) foram as ações da Deutsche Telecom. fui um daqueles pategos que comprou a 63.5€ (obra e graça da "deligente" indicação do meu gestor de conta do Banco7).
Gostaria de vos pedir a opinião:devo comprar mais para minimizar os estragos ou continuar a esperar para diminuir o "precepicio"?obrigado pela juda que me possam prestar

mjaguiar, em minha opinião tem agora uma boa oportunidade para fazer média.
A DT é uma grande empresa (que vai passar também por um downsizing e outras reestruturações) e que remunera bem os seus accionistas, além disso nunca se sabe...não me admirava se aos preços actuais não surgissem OpAs

Cumps e BN.

mjaguiar Escreveu:Boa tarde a todos

Sendo novato nestas andanças do caldeirão já tenho alguns anos (bastantes mesmo) de investir alguns €€ na bolsa. Das que me deixaram mais "queimado" ( e não chamuscado) foram as ações da Deutsche Telecom. fui um daqueles pategos que comprou a 63.5€ (obra e graça da "deligente" indicação do meu gestor de conta do Banco7).
Gostaria de vos pedir a opinião:devo comprar mais para minimizar os estragos ou continuar a esperar para diminuir o "precepicio"?obrigado pela juda que me possam prestar

21 Aug 2006 08:15 GMT

Deutsche Telekom shareholder German govt expects co's new strategy in autumn

FRANKFURT (AFX) - The German government, a major shareholder of Deutsche Telekom AG, expects that in autumn the company's executive board will present a strategy to improve profits Handelsblatt said, citing finance ministry sources.

"We still expect the Telekom board will present a strategy in autumn, one which will bring the company back to the forefront," the newspaper cited its source as saying.

Deutsche Telekom normally presents a two-year outlook whenever it publishes third quarter results in autumn.

The government, which holds a 31 pct direct and indirect stake in Deutsche Telekom, is represented on the company's supervisory board by the finance ministry.

On Aug 10, Deutsche Telekom had cut its operating income and sales forecasts for 2006 and 2007 as second quarter results missed expectations due to fierce competition in all three business areas -- mobile, fixed-line and business customer.

The German media has lately been rife with speculation that some of the company's influential shareholders, like US private equity fund Blackstone, do not want to extend the CEO contract of Kai-Uwe Ricke.

Focus weekly said the German government is also unhappy with the way the company's share price has dropped recently.

Ricke's CEO contract is due to expire in the autumn of 2007 and in Germany normal practice dictates that one year before a contract expires a decision should be made on whether or not to extend it.

Handelsblatt today cited DWS investment fund managing director Klaus Kaldemorgen as saying that changing the management board at this point would not be good for the company.

"We believe that it would be a mistake because a lot of time would be lost. Mr Ricke and his team understand the market and one has to give them the opportunity to do everything in the face of very tough competition," Kaldemorgen said.

marilyn.gerlach@afxnews.com

21 Aug 2006 05:45 GMT
=THE SKEPTIC: Blackstone's Call On DT
(This story was originally published Friday)
By Robb M. Stewart

A DOW JONES NEWSWIRES COLUMN


LONDON (Dow Jones)--A lot of head-scratching has gone into trying to puzzle out Blackstone's EUR2.7 billion investment in Deutsche Telekom, particularly with the recent sharp decline in the company's share price.

The private equity firm bought a 4.5% stake in the German telco in late April, sparking speculation it was going to launch a leveraged bid for the company.

That thinking has since been quashed.

Insiders say Blackstone approached the German government about the possibility of buying a stake early in the year, and was only looking for a 4.5% interest. Blackstone also has locked itself in for two years.

Besides, the German government and state-owned bank KfW together own 32% and are locked up for a year. And a leveraged buyout would be difficult to structure given the already relatively high leverage of DT, even in the current buoyant leveraged loan market.

So what was Blackstone's motive?

As many observers have noted, the value of the stake has dropped considerably since it was bought. DT's shares have fallen more than 20% since Blackstone and Deutsche Telekom announced the deal, cutting around EUR540 million in value from the 4.5% stake.

Of course, that's on paper since Blackstone has agreed not to sell for a couple years.

And it isn't so clear cut. Reports suggest the stake was highly leveraged, with Blackstone only putting up 15%. Assuming average interest on the remainder in the mid-single digits - covered in part by a 6.67% dividend yield on the stock - then the decline in the value of Blackstone's investment is less than the EUR540 million it would have been if it had paid for the stake entirely with own equity.

Still, the value has undeniably declined - as have expectations for DT since last week, when it issued a surprise profit warning, cutting its core earnings and sales forecasts for this year and next.

It could simply be a large gamble by a company struggling to invest the huge pool of capital it has raised. Blackstone may, not unreasonably, expect Europe's largest telco to be able to fight back against competitors over the next two years and resume a growth track.

Still, it's unlikely as things stand that would translate into the sort of return expected on a private equity investment.

So, some have suggested that Blackstone will seek to exert pressure on management through its supervisory board seat. But while DT will doubtless turn to Blackstone for guidance on areas such as M&A, it's less likely that one of 20 seats will be able to push DT to sell off sizable assets and ramp up its dividend.

That doesn't leave many other interpretations unless one accepts that Blackstone may have made a political investment by buying into DT.

It did, after all, buy the stake directly from KfW at a price higher than it would have had to picking up shares in the market. By doing so, though, it helped KfW avoid placing the shares.

And this may be important goodwill in Europe's largest economy. Playing a helpful role will help allay criticism of buyout firms in Germany and bolster Blackstone's reputation, which may in turn pay dividends when it seeks to pick up future assets.


(Robb M. Stewart, founder of the Skeptic column in 2001, has reported for Dow Jones Newswires since 1997 from Sweden and the U.K. He can be reached at robb.stewart@dowjones.com)