Germany's incumbent operator: strong balance sheet and a good yield, plus having restructured, an improving free cash flow. Yet the company again appears determined to embark on world domination, such as the approach to take over Sprint in the US. Globally, telcos are embarking on another round of consolidation. Deutsche Tel appears to want to be a leader, raising fears of further equity issuance (dilution) and rising debt. Better to switch into those companies which are going to be 'consolidated'.
Deutsche Telekom is currently a much unloved company. However, it is starting to sort out its act in much the same way that other incumbents have done across Europe. The German Government has legislated that it can maintain exclusive use of its fibre optic cables until it has recovered the costs of its investment. It has strong cash flow and a high, well covered dividend, making it a buy.
| Sedol |
Type |
Price |
Date |
|
5842359 |
Sell |
EUR 11.674 |
13/05/2008 |
| 5842359 |
Buy |
EUR 13.04 |
01/03/2007 |
| 5842359 |
Buy |
EUR 13.59 |
16/02/2007 |
|
