Europe’s biggest phone company, Deutsche Telekom, has been explaining to shareholders at its annual general meeting, the thinking behind its overseas acquisitions. It has just bought 25% of Greece’s OTE for 3.2 two billion euros.
But for the shareholders it was the price of the stock that matters as of those attending the AGM explained: “The main problem is that the share price is always lagging behind. Mr Obermann has tied his personal future to the share price and we can only hope that he’ll succeed in time, before the share prices takes him down. It would be a pity if that happens, because he’s doing a good job.”
It has been suggested that the German government – which owns nearly a third of Deutsche Telekom – has been pressing the management to make large acquisitions in the hope of raising its sagging share price.