Handelsblatt5 days agoOpinion1 min readGermany

Comment: The state's shareholding in Telekom has never been as important as it is today

In the event of a merger with the US subsidiary, the federal share would be diluted - a risky step in times of geopolitical power politics

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The German state holds 28.6 percent of the shares in Deutsche Telekom.
A planned merger with the US subsidiary would dilute this share and transform the group into a global company with German roots.
Given the geopolitical power politics of the USA and China, state ownership is an important lever that Berlin must not let go.

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Why It Matters

The German state directly and indirectly controls 28.6 percent of the shares in Deutsche Telekom, one of the country's largest corporations with headquarters in Bonn. Telekom is seeking a merger with its US subsidiary, which could create the largest telecommunications group in the world.

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It seems like a relic from another time. The German state holds a large stake in one of the country's largest corporations. Berlin directly and indirectly controls 28.6 percent of the shares in Deutsche Telekom. But this is not a remnant of state capitalism, but is more important today than ever before. Berlin should not give up this lever.

But that's exactly what could happen. Telekom is aiming for a merger with its US subsidiary. A merger could create the largest telecommunications group in the world. Management may want to use the power to compete with big tech giants. As a result, the federal share would be diluted. And a DAX company with headquarters in Bonn would become a global company with German roots.

And that cannot currently be in the interests of the German state. The USA and China have changed geopolitics and economic policy. National companies are a power factor that is deliberately used by US President Donald Trump and China's state and party leader Xi Jinping.

Open Questions

When exactly is the merger with the US subsidiary planned?
How high would the diluted federal share be after the merger?
What specific measures is the federal government planning to secure the share?

Comment: The state's shareholding in Telekom has never been as important as it is today

In the event of a merger with the US subsidiary, the federal share would be diluted - a risky step in times of geopolitical power politics

Quick Look

The German state holds 28.6 percent of the shares in Deutsche Telekom.
A planned merger with the US subsidiary would dilute this share and transform the group into a global company with German roots.
Given the geopolitical power politics of the USA and China, state ownership is an important lever that Berlin must not let go.

AI-generated summary