The Telekom boss’s contract was extended early until the end of 2026.
(Photo: Getty Images)
Dusseldorf Even Vodafone, once the leading telecommunications company in Europe, is under massive pressure. In the past six years, the group has lost more than 50 percent of its market value. Germany is the most important market for the company, but here, too, Vodafone has slipped to last place in terms of important service revenues in mobile communications, behind Deutsche Telekom and Telefónica. There is already speculation in the industry as to whether an activist investor could take the opportunity to get involved.
In particular, developments at British Telecommunications (BT) are closely monitored by Telekom. Because the Dax group holds around twelve percent of BT through its pension fund. If Höttges wanted to buy, now would be a good time – before Drahi creates facts. Höttges’ problem, however, is that the record debts of 130 billion euros at Telekom leave him little leeway for takeovers.
Höttges has to reposition Telekom in Europe. Measured against the collapse of its competitors, the Dax group is doing well on the stock market today. The share price has largely stagnated since the great crash at the beginning of the millennium. With a market capitalization of a good 80 billion euros, Telekom is nevertheless the most valuable telecommunications company on the continent.
But that’s not enough. The market in Europe is being redistributed. Seldom has it been so much in motion as it is now. Powerful corporations are becoming takeover candidates. Höttges and his team must see this as an opportunity to position themselves.
Top jobs of the day
Find the best jobs now and
be notified by email.
In the coming year, they should also have new scope for big deals. The Dax group is preparing a partial sale of its radio tower division in Germany. The area is particularly lucrative and could be valued at up to 20 billion euros. The move could help Telekom position itself with a long-term strategy in Europe and not become even more dependent on the US market.
More: Supervisory board extends contract of Telekom boss Höttges – Post boss Appel is to become chief supervisor