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DT director asks Germany to skip dividends
04 April 2012
Union representative calls for state’s dividends in DT to be reinvested on upgrading networks in Europe and US
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Deutsche Telekom
T-Mobile
Germany
Europe
US
Deutsche Telekom labour representatives have put forward a proposal to the German government to give up at least portion of its roughly €1 billion in yearly dividends in order to help the company to speed up broadband network deployments.
The operator, which is 32% owned by the German state, requires several billion euros to invest in upgrading networks in Europe and the US.
Lothar Schröder, Deutsche Telekom’s vice chairman and a board member of the Ver.di union, said in a phone interview with Bloomberg: “Leave the money in the company and take a higher share. If you do that for five years, Deutsche Telekom would make some progress in broadband and the government would have something to show for [it].”
Schröder plans to discuss the proposal with CEO René Obermann and with German politicians. The operator recently confirmed its dividend plan for at least €0.70 per share in this year. Germany will get about €960 million in dividends this year, which is based on the operator’s estimation for €3 billion in dividends for last year, according to Bloomberg. GTB
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