graphic
News > International
T-Online makes solid debut
April 17, 2000: 7:28 a.m. ET

Offering of Europe's largest ISP attracts buyers amid market tremors
graphic
graphic graphic
graphic
LONDON (CNNfn) - Europe's largest Internet offering hit the stock market Monday and emerged relatively unscathed from the turmoil afflicting other technology stocks.
    T-Online, a subsidiary of Deutsche Telekom (FDTE), priced its issue at 27 per share over the weekend, valuing the company at 30 billion ($28.8 billion). In early trade Monday T-Online stock gained 20 percent to 32.40, as investors welcomed the firm's decision to sell shares for a price at the bottom end of the previously indicated 26-32 range. graphic
    Telekom said the issue was heavily oversubscribed, with both individual and institutional investors demanding more than 10 times the numbers of shares on offer, indicating a healthy appetite among investors despite the pummeling received by other tech stocks in Europe and the United States.
    T-Online is Europe's largest Internet service provider, with about 5.3 million subscribers. Telekom sold 100 million shares, 9 percent of the company, raising 2.7 billion.
    T-Online wants a separate listing from Deutsche Telekom to pursue more acquisitions. An IPO would give the company a currency with which to do deals. The firm has already bought a 25 percent stake in France's second-largest ISP, Club Internet, and has holdings in several other online companies.
    In the summer the German government will sell a third slice of Deutsche Telekom's equity to investors as it continues to reduce its holding in the company, now at two thirds. T Mobil, Telekom's cellular subsidiary, is slated for an IPO in the fall.
    Today's IPO was seen as a key test of investor appetite for Internet companies.
    "T-Online is very important, we'll see how that does," a spokeswoman for United Pan-Europe Communications, a Dutch cable operator that plans to list shares in its Chello high-speed ISP unit in the next two months, told CNNfn. She said Chello's plans for an IPO remain on track at the moment. Back to top

  RELATED STORIES

Telekom trims Net IPO - Apr. 03 , 2000

T-Online valued at $37B? - Mar. 23 , 2000





graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.