Gontscharuk, who had DT as a partner in the Russian mobile operator MTS for a number of years before the German carrier sold its stake, told the financial newspaper that uniting two such large companies would create a mega-group with a presence everywhere from North America, through Europe and into Asia, adding that several analysts have expressed support for the idea. Deutsche Telekom currently has a market cap of $60bn while MTS is at $22bn, but we’re growing fast, he went on. Speaking in the abstract, it would be a mega-deal.
That said, he acknowledged that there are rumors of some DT shares coming onto the market, but it would be only a small percentage of the total, so small that we would have no chance of exerting any influence in the operation of the business. Another complicating factor, he went on, is the presence of US investor Blackstone, which clearly has its own agenda here.
Asked whether the central problems would be political rather than economic/financial, Gontscharuk answered Of course, but as I’ve already said, we’re talking theoretically here. He said there were no moves underway to reduce any of their political issues.
The timing of Gontscharuk’s remarks was arguably not the best. Firstly, because the German incumbent was facing strike action by 10,000 workers, in response to attempts by CEO Rene Obermann to move staff into a new subsidiary, presumably with a view to gradually reduce headcount.
Secondly, because nearby Estonia had just undergone a couple of weeks of sustained cyberwar DDoS attacks on government and media websites, with strong suspicions that the culprits were from the big bear on the other side of its border. In such an environment, Germany’s appetite for any serious investment in its national incumbent, particularly coming from Russia, is likely to be quite limited.
