LONDON—Deutsche Telekom announced it will implement a four-point plan to keep its debt reduction program on track:
- A dividend US$0.37 for 2001, which is 40 percent lower than last year, will be proposed to the supervisory board and the general meeting of shareholders;
- There will be sharp cuts in capital expenditure and in costs;
- The board of management will spin off nonstrategic equity holdings;
- The board of management also decided against holding the initial public offering (IPO) of T-Mobile in the first half of the year, and a new date will be dependant on the global stock-market situation.
The company believes these measures will reduce its debt by US$44 billion by the end of 2003.
