European telephone companies are looking for ways to raise more cash, and Germany-based Deutsche Telekom AG is following suit. The company, which has about 40,000 cell sites in Europe, may look at options like a spinoff or initial public offering, according to Bloomberg. The IPO could value assets in billions of dollars.
“Talks are still at an early stage and no final decisions have been made about which assets might be included,” but carving out infrastructure that transmits phone signals can both raise cash and lower expenses, reports Bloomberg.
Thomas Dannenfeldt, Deutsche Telekom’s chief financial officer, said in a call in February that “the company would be open to evaluating options as its peers consider selling off their towers.” Dannenfeldt said that he felt it was “obvious” that the company has “a very strong position.” Deutsche Telekom may follow in the footsteps of Telefonica SA, the Spanish phone company that also is considering an IPO of its newly created tower and submarine-cable unit Telxius.