Kazakhstan says Deutsche Telekom AG agreed in principle to buy a 49% voting stake in the Kaztelekom state telephone company and take management control for up to 15 years. The agreement ensures a large German loan for telecommunications investment will be repaid and the number of phone lines in the former Soviet republic will be more than doubled within 10 years, a senior minister said. It is worth $535m, including loan guarantees, investment pledges, a signing bonus and paying off state debts to Kaztelekom. Kazakhstan received a $225m loan in 1992 from German investment agency Kreditanstalt fuer Wiederaufbau to upgrade its phone network. That loan, with interest, is now worth $330m. The government has repaid just $32.4m and under the recent pact, Deutsche Telekom has agreed to guarantee redemption of the rest.
