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Telekom's $2B cell deal
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October 22, 1999: 3:51 a.m. ET
MediaOne sells Eastern Europe assets to Deutsche Telekom
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LONDON (CNNfn) - Deutsche Telekom announced Friday it has agreed to pay $2 billion for the Eastern Europe wireless assets of U.S. firm MediaOne.
Deutsche is acquiring wireless assets in Poland, Hungary and Russia, with a total of about 2.5 million cellular subscribers.
Telekom chairman Ron Sommer said the acquisitions were "a logical expansion of Deutsche Telekom's presence in Europe."
The assets being bought by Deutsche are adding 5,500 subscribers every day, according to the company.
MediaOne (UMG) is in the process of being acquired by U.S. telecom colossus AT&T (T) in a $58 billion deal.
Deutsche already owns shares in the Polish and Hungarian ventures, and when the latest deal is completed it will possess around 50 percent of their equity. The Hungarian businesses being acquired by Deutsche are to be passed on to its 60 percent-owned subsidiary Matav, the former state-owned Hungarian telecom monopoly.
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