Deutsche Telekom threatens to call off deal

NEWS Deutsche Telekom's cable television system sale to Liberty Media is unlikely to conclude this week. The delay confirmed last week's rumours that discussions were not going smoothly and Deutsche Telekom sources, quoted in German business daily Handelsblatt, are accusing Liberty Media of manipulating the telco's weak share price to re-negotiate the terms of the deal. Meanwhile, Liberty Media is blaming its recalcitrance to sign the $4.7bn contract for a major part of Deutsche Telekom's cable network (originally due to be concluded by the end of this week), on technicalities. Deutsche Telekom is now threatening the media group with the possibility of calling off the talks and selling to a different organisation, citing London brokers, Compere Associates, among the rivals. The telco is keen to reduce its massive debts of around $54.69bn to $50bn by the financial year ending 2002, according to a report from Goldman Sachs. Deutsche Telekom plans to reach a lower net debt though a series of disposals, the report stated, including around $5bn from the sale of its cable TV network and $2.5bn from real estate.