U.S. investment group Blackstone has purchased a 4.5-percent stake in Deutsche Telekom from Germany's state-owned investment bank KfW, it was announced Monday.
The transaction involves 192 million shares and reduces KfW holdings in DT to 33 percent, which will keep KfW as the company's largest shareholder. KfW has pledged not to sell off any additional shares for at least one year.
DT issued a statement Monday welcoming the addition of Blackstone's "demonstrated expertise in the telecom sector."
The Financial Times, however, predicted that the deal, valued at more than $3 billion, would fan public and politically charged concerns in Germany over foreign ownership or influence over public assets.
Copyright 2006 by United Press International