Monthly M&A Insider - Mergermarket

Germany
T-Online: Deutsche Telekom appeals against
€1.15 compensation ruling
• Deutsche Telekom (DT) has appealed the recent
T-Online ruling by the Frankfurt regional court that former
shareholders of T-Online are entitled to receive a €1.15 plus
interest compensation per share.
• The former minority shareholders had said right after
the ruling that they also planned to appeal. While the
shareholders believe a €1.15 compensation not to be
high enough, DT believes it is too high. DT still believes
that the ratio of Deutsche Telekom to T-Online shares set
for the 2006 merger of the companies was adequate,
the spokesperson said. Furthermore, the spokesperson
criticised the judge for solely relying on stock market prices
for evaluation purposes, ignoring the income approach
completely.
• The Frankfurt regional court ruled in mid March that
former T-Online shareholders are entitled to receive
a cash compensation of €1.15 per share plus interest
from Deutsche Telekom. The court had to decide on the
level of compensation T-Online shareholders can receive
following Deutsche Telekom’s bid for the company back in
2006. During the Deutsche Telekom/T-Online merger, an
independent expert had valued T-Online at approximately
€14.70 per share, but the exchange ratio in the tender offer
only had a value of around €8.24 per T-Online share.
Germany
Monthly M&A report – 112