UK markets close in 2 hours 16 minutes
  • FTSE 100

    7,364.84
    +67.69 (+0.93%)
     
  • FTSE 250

    21,602.51
    +150.01 (+0.70%)
     
  • AIM

    1,089.01
    +10.98 (+1.02%)
     
  • GBP/EUR

    1.1949
    +0.0042 (+0.35%)
     
  • GBP/USD

    1.3472
    -0.0019 (-0.14%)
     
  • BTC-GBP

    27,137.61
    +2,355.79 (+9.51%)
     
  • CMC Crypto 200

    832.50
    +21.90 (+2.70%)
     
  • S&P 500

    4,410.13
    +12.19 (+0.28%)
     
  • DOW

    34,364.50
    +99.13 (+0.29%)
     
  • CRUDE OIL

    83.74
    +0.43 (+0.52%)
     
  • GOLD FUTURES

    1,842.40
    +0.70 (+0.04%)
     
  • NIKKEI 225

    27,131.34
    -457.03 (-1.66%)
     
  • HANG SENG

    24,243.61
    -412.85 (-1.67%)
     
  • DAX

    15,085.12
    +73.99 (+0.49%)
     
  • CAC 40

    6,848.90
    +61.11 (+0.90%)
     

Deutsche Telekom prepares T-Systems sale - Manager Magazin

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
ITS World Congress 2021 in Hamburg
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • DTEGY

BERLIN (Reuters) -Deutsche Telekom is preparing to sell its troubled IT services unit, T-Systems, Manager Magazin reported on Thursday, citing people familiar with the matter.

The company plans to start talks with interested parties in February, with a deal expected in September, the magazine added.

Business daily Handelsblatt reported separately that Deutsche Telekom was also considering a spin-off of T-Systems, which it has already discussed with the German government, which owns a 30.5% stake of Deutsche Telekom.

In any spin-off, Deutsche Telekom and the German government would each hold a third of T-Systems, while the remaining third would be sold to investors, Handelsblatt said, citing people familiar with the matter.

Deutsche Telekom was not immediately available for comment on the report. A spokesperson for T-Systems said the company had plans for growth but was also looking into other options.

While the telecoms business has been performing well, T-Systems has been underperforming, with incoming orders declining by 25% during the coronavirus crisis.

Last year, Deutsche Telekom's finance chief Christian Illek said that reduced IT spending by the automotive and airline industries would necessitate additional restructuring at T-Systems on top of an ongoing three-year turnaround plan.

(Reporting by Riham Alkousaa and Nadine Schimroszik; Editing by Maria Sheahan, Emma Thomasson and Kim Coghill)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting