Deutsche Telekom has cancelled its plans to float off mobile subsidiary T-Mobile this year. The decision follows an internal study, which found that the floatation should be postponed until the stock market improves.
German newspaper Sueddeutsche Zeitung, which broke the news, quotes Deutsche Telekom CEO Karl-Gerhard Eick as stating that long-term positive growth would have to return to the stock market before the company sells T-Mobile.
Deutsche Telekom is aiming to reduce its $63 billion debt. The IPO of T-Mobile is a core part of its debt cutting strategy and this delay is another setback. Telekom’s share price is expected to fall below E10 this week, and the IPO delay will not help.