Deutsche Telekom will receive USD 39 billion, of which 25 billion in cash and 8% in AT&T shares in the value of USD 14 billion.

Deutsche Telekom will receive 8% of the shares in the US AT&T, whereas AT&T will become full 100% owner of T-Mobile USA. For that reason the German telecommunication giant will receive USD 39 billion, of which 25 billion in cash and USD 14 billion in AT&T shares. The conclusion of the contract is expected to be completed in the first half of 2012 after it is prior approved by the USA regulatory body. Upon the conclusion of the contract, Deutsche Telekom is to receive one representative in the Board of Directors of AT&T.

The Chief Executive Officer of Deutsche Telekom, Mr. René Obermann stated that the best solution for the company, customers and shareholders has been achieved. "This will strengthen our position in Europe, and concurrently we will continue to participate in the rapidly growing business of mobile data in USA. We will be able to focus more on the opportunities of the modern infrastructure in Germany and Europe, as well as on the Internet products that are an integral part of our overall strategy “fix, transform and innovate.” Following our initiatives for finding a solution for our activities in United Kingdom and Poland, with this transaction we have nearly accomplished the “fix” part of our strategy. We will now focus on our resources more on the “transform” and “innovate” parts of our strategy in order to accelerate the transformation of Deutsche Telekom,” stated Obermann.

According to the Chief Financial Officer Timotheus Höttges, Deutsche Telekom, as the biggest single share holder of AT&T, will significantly benefit from their strong dividend. “With the excellent results of this transaction we will be able to continue to develop our company. At the same time we will be able to reduce our debts and initiate one of the biggest share buy back programs in Germany as well as in the European telecommunication industry,” said Höttges.
Randall Stephenson, the Chief Executive Officer of AT&T, stated that this transaction will provide significant benefits for the customers, shareholders and the public that are available at this level only with the combination of the complementary network technologies, spectrum positions and operations of these two companies. “We are confident in our ability to execute a seamless integration, and with additional spectrum and network capabilities, we can better meet our customers’ current demands, build for the future and help achieve the President’s goals for a high-speed wirelessly connected America,” said Stephenson.

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