France Telecom has sold its holding in its former ally Deutsche Telekom to the German state (public) bank Kreditanstalt fuer Wiederaufbau (KfW) for 3.1 billion euros ($2.76 billion), France Telecom said on Tuesday, December 19.
KfW had undertaken to buy 54.9 million shares, or 1.8 percent of Deutsche Telekom "under certain conditions". The price was about 56.2 euros per share.
The sale, which had been announced in principle in June, yields France Telecom a capital gain before tax of 1.9 billion euros.
Under the agreement France Telecom may exercise an option to buy back 1.8 percent of its own capital held by Deutsche Telekom, between January 2002 and January 2003 at a price based on the market price at the time.
If France Telecom does not exercise the option before January 31, 2003, Deutsche Telekom would have the right to sell the holding to France Telecom at the market price on January 31, 2003.— (AFP)
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