Telekom delays mobile float

Telekom's Ron Sommer led the company on a US buying spree

Deutsche Telekom has delayed the flotation of its mobile phone subsidiary T-Mobile.

The flotation had originally been scheduled for the autumn.

The recent acquisition by Deutsche Telekom of US mobile company Voicestream makes the flotation more complex, the company said.

It is not clear when it will now be floated, though some analysts predict it could now be late next year.

"A final decision on the offering has not yet been taken," Deutsche Telekom said in a statement.

Investors want more clarification on financial details, but that will not be possible until the value of Telekom's different divisions is determined.

"Potential investors are also setting more stringent requirements regarding the presentation of the future orientation of Deutsche Telekom's mobile communications business and more particularly, of T-Mobile International," it said.

Deutsche Telekom's T-Mobile business includes its German business T-Mobil, the UK's One2One and max.mobil in Austria.

Weaker stocks

Analysts have welcomed the decision, pointing to the weakness of telecom and technology stocks generally.

"We had expected this to happen and it's the right decision," Holger Grawe, telecoms analyst at WestLB Panmure, said.

"Market sentiment for telecoms stocks is not very good at the moment and it is wise not to insist on going ahead with the listing regardless of the cost," he added.

The announcement follows recent weakness in Deutsche Telekom's own share price as well as that of its recently-floated subsidiary T-Online.

In March, Deutsche Telekom shares were trading just above 100 euros. On Wednesday, the shares were slightly higher at 45.33 euros apiece.

Part of the reason for the weakness in the Telekom share price is its purchase of US mobile company Voicestream.

It will pay $50bn for the deal, creating a global telecoms superpower.

But some observers think Deutsche Telekom is paying too much for the company.