Deutsche Telekom to launch divestment of German mobile towers: sources

[July 01, 2016]  FRANKFURT (Reuters) - Deutsche Telekom is preparing the sale of its German wireless towers in a potential 5 billion euro ($5.5 billion) deal as it seeks to free up cash for investments to upgrade its European broadband network, sources close to the matter said.

The German company has mandated Goldman Sachs <GS.N> and Morgan Stanley <MS.N> to prepare an auction of its German towers, which it plans to launch in the autumn and which it hopes will value the asset at 4-5 billion euros including debt, they said.

Deutsche Telekom is planning to send out first information packages on the business to prospective buyers after the summer break and will, depending on their feedback, decide on whether it divests all or just a stake of the business, or keeps it.

Goldman Sachs, Morgan Stanley and Deutsche Telekom declined to comment.

(Reporting by Arno Schuetze; Additional reporting by Harro Ten Wolde; Editing by Victoria Bryan)

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