FRANKFURT, Germany-Deutsche Telekom said it signed an agreement to sell its 24.5-percent stake in Wind, its joint venture in Italy. Enel and France Telecom will purchase the stake for about $2.5 billion.
After the transaction, Enel’s stake in Wind will increase to 56.6 percent from 51 percent, and France Telecom’s holding, previously 24.5 percent, will increase to 43.5 percent. The companies plan to list Wind on the stock market in the first half of 2001.
Wind provides cellular and fixed-line services in Italy. It is the third-largest mobile operator in Italy with 2.03 million subscribers as of March 31.
Deutsche Telekom said it will make a $2.2 billion gain on the transaction. The German carrier said the four companies-Deutsche Telekom, France Telecom, Enel and Wind-will also settle on a reciprocal basis all their pending legal proceedings.
“The agreement also calls for France Telecom and Enel to end their legal actions against Deutsche Telekom and to release the German operator from its noncompetition obligation,” said a France Telecom statement.
Relations between Deutsche Telekom and France Telecom have been strained since last year when the German company made an unsuccessful bid to acquire Telecom Italia.
