Deutsche Telekom could delay the flotation of its mobile phone business for the third time, moving the date to beyond the end of 2002, chief executive Mr Ron Sommer indicated yesterday.
The company had previously said the float of T-Mobile would take place in either June or November this year. It has already been postponed twice due to difficult conditions in the telecoms sector.
Asked whether the current economic and market climate would affect the timetable, Mr Sommer said: "We prepare thoroughly to be able to float on either date, but we cannot rule out that it will happen on neither date." Analysts said the market would interpret the remarks as pushing back the flotation into next year.
The T-Mobile IPO is earmarked to bring €10 billion into Telekom's coffers. It forms a key part of Deutsche Telekom's pledge to reduce its debt pile from €65 to €50 billion by the end of 2002.
Deutsche Telekom shares plunged more than 5 per cent on Mr Sommer's remarks. Deutsche Telekom bonds also fell sharply.
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