Deutsche Telekom and France Telecom plan to sell their respective...
Deutsche Telekom and France Telecom plan to sell their respective 10% stakes in Sprint in stock offering of up to 174 million shares. Transaction could be valued at $3.7 billion if overallotment of 22.8 million shares of Sprint FON…
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stock is exercised along with 152.03 million in public offering, companies said in SEC filing. Move marks final unraveling of 3-way alliance of FT, DT and Sprint, process that began last year when FT took control of Global One venture that companies ran (CD Jan 26/2000 p1). FT bought both Sprint and DT out of their stakes in venture for combined price of $4 billion at time when Sprint still was planning to merge with WorldCom. FT and DT later that year divested their remaining stakes in each other. Plans of both to sell their investment in Sprint comes when Sprint shares are trading close to 52-week low of $19.62 per share. Sprint said it wouldn’t receive proceeds from offering, which will go directly to DT and FT. Timing of offering was somewhat surprising to some analysts, although action came in period when both FT and DT were scrambling to slim down their debt loads. FT said deal was part of its plans to dispose of “nonstrategic” assets to reduce debt. FT said it planned offering later in first quarter.