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Top Financial News
Sun, 23 Jul 2000, 5:11pm EDT
Deutsche Telekom, VoiceStream Boards Meet on $56 Bln Purchase
By George Stein


Bonn, July 23 (Bloomberg) -- Deutsche Telekom AG`s and VoiceSteam Wireless Corp.`s boards are meeting to vote on management recommendations that the German phone company acquire VoiceStream for $55.7 billion, to join consumers` rush to mobile phones in the U.S., a person familiar with the situation said.

An announcement is scheduled for tomorrow before European stock markets open, the person said. Investors holding more than 50 percent of VoiceStream stock have agreed to support the acquisition, the person said. VoiceStream and Deutsche Telekom declined to comment.

VoiceStream shareholders would receive $30 in cash plus 3.2 shares of Telekom stock for each VoiceStream share, the person said. That`s $50.7 billion for all of VoiceStream`s stock, or about $195 a share, 30 percent more than VoiceStream`s Friday closing price. VoiceStream has debt of $5 billion.

Deutsche Telekom, Europe`s largest phone company, also will invest $5 billion in cash in VoiceStream, which will use the money to bid later this year for U.S. frequencies in the next generation of wireless-phone networks, the person said. Deutsche Telekom will receive convertible preferred shares in exchange, the person said.
 
aus der Diskussion: VOICESTREAM - Uebernahmespekulation
Autor (Datum des Eintrages): joeycool  (23.07.00 23:17:16)
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