AT&T acquires T-Mobile USA

Deutsche Telekom will take an approximately 8%stake in US telecommunication company AT&T. At the same time Deutsche Telekom will hand over 100% ownership of T-Mobile USA to AT&T. This has been agreed by the boards of the two companies. AT&T will pay USD 25 billion in cash for T-Mobile USA, in addition to USD 14 billion in AT&T shares. AT&T has the right to increase the portion of the purchase price paid in cash by up to USD 4.2 billion with a corresponding reduction in the stock component. The value of the transaction will be USD 39 billion. The merger still needs US regulatory approval. The closing of the transaction is expected to be completed in first half of 2012. René Obermann, CEO Deutsche Telekom: “We have achieved the best solution for our company, our customers and shareholders. This will strengthen our position in Europe, whilst we are still participating in the rapidly growing business of mobile data. We will be able to focus more on the opportunities of a modern infrastructure in Germany and Europe, as well as in Internet products that accompanies to our strategy “fix, transform and innovate”. Following our initiatives of finding a solution for our activities both in the United Kingdom and Poland, we have with this transaction nearly accomplished the “fix” part of our strategy. We will now focus our resources more on the “transform” and “innovate” blocks of our strategy in order to accelerate the transformation of Deutsche Telekom.” Timotheus Höttges, CFO Deutsche Telekom: “As the biggest single share holder of AT&T we will also significantly benefit from their strong dividend. With the excellent result of this transaction we will be able to continue to develop our company. At the same time we will be able to reduce our debts and initiate one of the biggest share buy back programs in both Germany as well as in the European telecommunication industry.”