FRANKFURT, Germany-Investment banking firm Goldman, Sachs & Co. announced it has been selected as lead foreign manager for the privatization of Deutsche Bundespost Telekom.
Specifically, Goldman, Sachs will be responsible for selling shares of Deutsche Bundespost Telekom to institutional investors in the Americas.
With an estimated total valuation of nearly $60 billion, Deutsche Telekom’s privatization will be one of the world’s largest equity offerings to date, the company said. It is reported to be Europe’s largest ever privatization effort.
Deutsche Bank AG and Dresdner Bank AG were chosen to sell shares to investors in Europe. Deutsche Bank will manage institutional investors, while Dresdner will manage private investors.
The German government also has named CS First Boston Corp. as its adviser for the structuring and execution of the deal, according to CS First Boston.
First Boston said it expects the privatization program to begin with a sale of approximately 20 percent of Deutsche Telekom’s equity, valued at $10 billion, in 1996.
After becoming a joint-stock company next year, Deutsche Telekom will reportedly pursue full registration with the Securities and Exchange Commission rather than be traded as American depository receipts. SEC registration requires more stringent financial disclosure and conformity to U.S. accounting standards.
