Deutsche punt

24 Apr 2006 By Taron Wade

Private equity funds typically want control of companies. But Blackstone is only getting 4.5% despite writing an extremely large ticket. Buyout firms have a lot of cash on hand. Blackstone s purchase is either creative or desperate.

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Blackstone has purchased 4.5% of the shares of Deutsche Telekom from KfW at a price tag of E2.7bn. The private equity fund has paid E14 per share, which is a 2.6% premium to where the shares closed Friday.

The sale reduces KfW's stake to 17.3%. Deutsche Telekom is still being privatised, and KfW holds and issues shares to the public market for the German government during privatisations. KfW has agreed with Blackstone not to sell any more shares for a year. The German government still holds 15.2% of Deutsche Telekom.

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