Deutsche Telekom signs Letter of Intent with Klesch-Liberty Media partnership - acquisition expected to close in mid 2001 Deutsche Telekom AG announced today that it has signed a Letter of Intent to sell the remaining broadband cable assets of Deutsche Telekom in Germany to an investment partnership organized by Klesch & Company Limited, the London based equity firm, and Liberty Media Corporation, Colorada, USA (NYSE: LMGA and LMGB). The partnership intends to acquire 55% of the outstanding equity interests in the regional operating companies of Hamburg/Schleswig-Holstein/Mecklenburg-Vorpommern, Sachsen/Sachsen-Anhalt/Thüringen, Niedersachsen/Bremen, Rheinland-Pfalz/Saarland, Berlin/Brandenburg and Bavaria, together with an option for an additional 20% of the equity interests minus one vote in these regions.
The total number of homes connected in these regions is over 10 million. The acquisition is expected to close in mid 2001.
The partnership also intends to acquire that portion of Deutsche Telekom Kabel Service GmbH (DeTeKS), the level 4 operator owned by Deutsche Telekom, corresponding geograhically to the regions named above together with all of Deutsche Telekom's interests in MediaServices GmbH (MSG), which operates the digital platform in Germany.
Deutsche Telekom already sold off majority shareholdings of its cable networks in the regions of NorthRhine-Westphalia, Baden-Württemberg and Hesse. The management control of the company's cable network in the regions of NorthRhine-Westphalia and Hesse was transferred to the new majority shareholders in July 2000.
For further information contact: Deutsche Telekom, Presse Office, +49 228 181 4949
Klesch & Company Ltd., A. Gary Klesch,
+44 20 7493 4300
Liberty Media Corporation, Vivian Carr, +1 720 875 5406