Deutsche Telekom had planned to buy Ukrainian Mobile Communications, but the acquisition is now looking problematic. According to press reports, the German giant may be reluctant to move forward because of its financial woes.
Currently, Deutsche Telekom is one of three western European shareholders in UMC, alongside the Netherlands’ KPN and Denmark’s TDC. They own 16.33% each. Under the rumored deal, Deutsche Telekom would buy out the smaller firms and also buy a 25% stake from telecoms monopoly Ukrtelecom, taking its total shareholding to 74%.
The UMC deal would only cost Deutsche Telekom $240 million, which the company can certainly afford. However, the collapse of its $4.78 billion deal to sell its cable assets to Liberty Media has renewed speculation that its credit rating might be devalued.