Dividend compensation payment for holders of the mandatory convertible bond issued by Deutsche Telekom International Finance B.V.
Deutsche Telekom AG has decided to pay the holders of mandatory convertible bonds a dividend compensation in cash. Now that Deutsche Telekom intends to pay a dividend of EUR 0.62 per share carrying dividend rights for the 2004 financial year in accordance with the Shareholders' Meeting resolution, the holders of the mandatory convertible bonds issued by Deutsche Telekom International Finance B.V. in 2003 are entitled to a dividend compensation payment under the terms and conditions of the bond.
Deutsche Telekom AG can fulfill this entitlement by adjusting the conversion ratio, which, depending on the price of the T-Share, can result in the issuance of additional shares upon conversion, or by way of a compensation payment in cash. The payment is made on the date the bond matures, on June 1, 2006.
The mandatory convertible bond has a volume of some EUR 2.3 billion. It has a 6.5 percent coupon and a conversion premium of 24 percent based on the reference share price at the issue date of EUR 11.80.