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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
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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