Russian conglomerate Sistema is seeking to acquire a significant stake in Deutsche Telekom, the German telecom group. In exchange, Sistema will grant Deutsche Telekom control of its telephone unit, which includes MTS, one of Russia’s largest mobile operators. Sistema has proposed full integration of its telecom division with Deutsche Telekom in return for 10-20 per cent stake in Deutsche Telekom as part of an asset swap. Alternatively, the German government could offer Sistema a part of its shareholding in Deutsche Telekom, for which it would later be compensated.
Deutsche Telekom had previously held a 40 per cent stake in MTS, but gradually reduced this holding, selling off its remaining 10.1 per cent stake last year. There has been “no official offer” from Sistema. However it is speculated that government officials and Deutsche Telekom have rejected Sistema’s overtures for political and strategic reasons.
