adplus-dvertising
Connect with us

News

Deutsche Telekom seeks investors to bankroll German internet overhaul

Published

 on

Deutsche Telekom is offering investors stakes in a company it is creating to overhaul Germany’s internet cables to help foot the bill for much-needed network modernisation, three people familiar with the matter said.

The deal is part of a German bid to catch up with other European countries such as Spain, which has outpaced Europe’s industrial powerhouse by laying high-tech glass fibre cables while Germany is mainly stuck with old-fashioned copper lines.

Deutsche Telekom, Germany’s main telecoms company, has come under increasing pressure to act quickly as the coronavirus pandemic has forced more people to work from home and rely on fast, stable internet connections.

The sources told Reuters that Deutsche Telecom and its adviser Deutsche Bank are targeting investors such as Dutch funds APG and PGGM and Canada‘s Brookfield and CDPQ, as well as sovereign wealth funds.

Deutsche Telekom’s initial plan is to roll out fibre cables to 4 million households and investors will be offered stakes equivalent to up to half of the project’s equity, the sources said. Further extensions of the network are likely.

The German company is following the strategy adopted by rivals, such as Spain’s Telefonica, which have struck similar deals with investors to help pay for network upgrades.

Deutsche Telekom, Deutsche Bank and the prospective bidders all declined to comment.

At the same time, the German telecoms giant is kicking off the sale of its T-Mobile Netherlands business to cut its debt and free up cash for investment in infrastructure.

FOREIGN INVESTORS

Deutsche Telekom is a laggard when it comes to fibre as it bet on improved copper cables to supply internet connections and only switched to focusing on faster fibre cables in 2019.

Its move is part of a trend among German companies of turning to foreign investors to fund parts of the infrastructure that keeps the wheels of industry whirring, such as energy.

Power network 50Hertz, for example, is now majority owned by Belgium’s Elia while gas-power firm Open Grid Europe is part-owned by Australian investor Macquarie.

Investment by China, however, is viewed sceptically. When China’s State Grid wanted to take a stake in 50Hertz in 2018, German state lender KfW prevented the move.

Fibre networks are typically financed with 30% equity and 70% debt and Deutsche Telekom is looking for investors to contribute half of the equity with it providing the rest.

Telefonica struck a deal in October 2020 with German insurer Allianz to develop a fibre optic network in Germany for 2.2 million households in a project valued at 5 billion euros ($6.1 billion).

Assuming a similar valuation, Deutsche Telekom’s project to supply about 4 million households would be worth some 10 billion euros, meaning investors would need to contribute 1.5 billion euros, or half of the 30% equity.

At its capital markets day in May, Deutsche Telekom Chief Executive Tim Hoettges underlined the company’s commitment to accelerating the rollout of fibre in Germany, taking it from 600,000 households last year to 2.5 million in 2024.

He said the company plans to invest 2.5 billion euros a year in fibre infrastructure.

DUTCH MOBILE SALE

Deutsche Telekom’s plan would still leave it trailing countries such as Spain and Sweden, where more than 60% of homes already get their internet via fibre cables. In Germany, only 5% of homes have fibre, slightly lower than Italy.

Deutsche Telekom executive Dominique Leroy has said its goal is to reach 10 million households with fibre by the end of 2024 and that it would seek partnerships where it makes sense.

While Deutsche Telekom is preparing to invest billions, it is also faces a large bill to exercise options to raise its holding in T-Mobile U.S. to more than 50% from 43%.

However, it is already saddled with 130 billion euros of debt and is now selling businesses to reduce the pile.

First in line is its subsidiary T-Mobile Netherlands, which is estimated to be worth up to 5 billion euros. The Dutch mobile business has 6.8 million customers and its sales last year came to 1.9 billion euros.

Deutsche Telekom’s adviser on the deal, Morgan Stanley, has sent out first information packs to prospective bidders asking for offers by the end of July, people familiar with the process said.

Suitors including buyout groups KKR, EQT and Warburg Pincus are expected to take part, as is French telecoms entrepreneur Xavier Niel, the people said.

Warburg Pincus, which employs former Deutsche Telekom CEO Rene Obermann, came close to buying the business in 2015.

Morgan Stanley and the potential bidders all declined to comment.

Once that sale is out of the way, Deutsche Telekom may look to sell its telecom towers division, the people said, adding that while conversations with banks are taking place no decision has been taken.

($1 = 0.8248 euros)

 

(Editing by John O’Donnell and David Clarke)

Continue Reading

News

Whitecaps, Timbers to face off in play-in match in Portland

Published

 on

VANCOUVER – The Vancouver Whitecaps will begin their post-season campaign with a play-in game against the Timbers in Portland on Wednesday.

The ‘Caps (13-13-8) ended the regular season with a 2-1 loss to Real Salt Lake on Saturday and finished eighth in Major League Soccer’s Western Conference standings.

The eighth and ninth spots from each conference meet in a play-in game this week, with the winner going on to face the No. 1 seed in the first round of the playoffs.

Each eighth-place team was set to host the play-in game, but Vancouver announced Friday that its home stadium, B.C. Place, is not available, so the club will cede home-field advantage to Portland (12-11-11), the ninth-place team.

The ‘Caps and Timbers split their three-game series during regular-season play, with each side taking a win, a loss and a draw.

The first round of the MLS playoffs is set to begin next weekend.

This report by The Canadian Press was first published Oct. 19, 2024.

The Canadian Press. All rights reserved.



Source link

Continue Reading

News

Real Salt Lake beats visiting Whitecaps 2-1 to set single-season club record for points

Published

 on

SANDY, Utah (AP) — Diego Luna scored a tying goal in the 73rd minute and Real Salt Lake added another on an own goal for a 2-1 victory over the Vancouver Whitecaps on Saturday night to set a single-season club record for points.

Real Salt Lake (16-7-11) secured the No. 3 spot in the Western Conference and will face Minnesota in the first round of the Major League Soccer playoffs. RSL reached 59 points this season, topping the 2012 team with 57.

Vancouver (13-13-8) will play the Portland Timbers on Wednesday in a wild-card game for a chance to play top-seeded LAFC.

Luna settled a long cross from Braian Ojeda before taking four touches to slot home a shot inside the far post for his eighth goal of the season.

RSL went ahead in the 83rd when Vancouver goalkeeper Isaac Boehmer misplayed a lofted ball that rolled into the back of the net.

Vancouver midfielder Ryan Gauld opened the scoring in the 58th to become the first player in club history to produce multiple seasons with at least 10 goals and 10 assists.

AP MLS:

The Canadian Press. All rights reserved.



Source link

Continue Reading

News

Juan Soto’s 3-run homer in 10th sends Yankees past Guardians 5-2 and into World Series for 41st time

Published

 on

CLEVELAND (AP) — Juan Soto’s arrival last winter was supposed to be that move that pushed the New York Yankees back to the top.

They’re one step away.

Soto hit a three-run homer with two outs in the 10th inning and the Yankees advanced to their 41st World Series — and first in 15 years — by beating the Cleveland Guardians 5-2 in Game 5 of the AL Championship Series on Saturday night.

Baseball’s biggest brand is going back to October’s main stage.

Soto, who was acquired in a seven-player trade from San Diego in December, pushed the Bronx Bombers into position with one big swing.

This was why he came, for this moment and for so many more.

“We’re right where we belong,” said Yankees general manager Brian Cashman, who pulled off the deal for Soto.

The Yankees will try to win their 28th title against either the New York Mets or Los Angeles Dodgers. Game 6 of the NL Championship Series is on Sunday at Dodger Stadium.

In the third consecutive tight game in three nights at Progressive Field, Austin Wells walked with one out in the 10th and Alex Verdugo followed with a grounder to Guardians second baseman Andrés Giménez, whose soft toss to the bag was dropped by rookie shortstop Brayan Rocchio for an error.

Hunter Gaddis struck out Gleyber Torres and had Soto in a 1-2 count before New York’s stylish outfielder sent a shot over the wall in center. Soto danced down the first-base line and paused to celebrate with his teammates before circling the bases.

“I was just saying to myself, `You’re all over that guy. You’re all over that guy. He ain’t got anything,’” said Soto, who moved alongside his manager, Aaron Boone, as the only New York players to homer in an extra-inning, series-clinching win.

Luke Weaver got the final three outs with Lane Thomas flying out for the last one, which was caught by Soto.

“We get to play for a world championship,” Boone said. “That’s pretty sweet.”

The 25-year-old Soto is eligible for free agency this winter, and Yankees fans chanted “Re-sign Soto!” during the postgame festivities. He’s expected to get a contract upwards of $600 million, and his heroics in Game 5 may have raised his price.

Giancarlo Stanton hit a two-run homer and was named ALCS MVP as the Yankees took care of the Guardians in five games. It wasn’t easy.

New York won the first two at Yankee Stadium without much fanfare or any major drama. However, it was a different story in Cleveland as all three games at Progressive Field were nail-biters.

The Guardians rallied to win Game 3 on two, two-run homers in their last two at-bats, and the Yankees held on to win Game 4 after blowing a four-run lead.

“This was a rollercoaster and we were able to just keep punching back,” Stanton said. “We know there’s much more work to do and it’s only uphill from here and we got to get it done.”

Cleveland just didn’t have enough and a surprising season under first-year manager Stephen Vogt ended just short of a World Series. The franchise remains without a title since 1948, baseball’s current longest drought.

“There’s only one team that gets to win the last game of the year, and unfortunately it’s not going to be us,” Vogt said. “But we accomplished a lot as a group. We got better. We worked extremely hard. I couldn’t be more proud of this group. We just didn’t get quite as far as we wanted to.”

The Yankees are back in the World Series, back where their fans expect them to be every year.

The club’s 82-80, fourth-place finish in the AL East last season led to some “soul searching as an organization” during the winter, according to Boone, who has been widely criticized but is one of just three managers to take New York to playoffs in six of his first seven seasons.

While the team’s core stayed mostly intact, getting Soto in a blockbuster trade on Dec. 7 — New York sent five players to San Diego for the three-time All-Star — accelerated the team returning to title contender.

“That was a good day,” Boone said with a laugh before the game.

Stanton’s 446-foot rocket into the left-field bleachers tied it at 2 in the sixth and chased Tanner Bibee, who had struck out New York’s dangerous DH in his first two at-bats and held the Yankees scoreless for the first five innings.

It was Stanton’s fourth homer in this series — his third in three days — and his 16th in the postseason, moving him into fourth place on the club’s career list behind Bernie Williams (22), Derek Jeter (20) and Mickey Mantle (18).

Before the game, Boone was asked what makes Stanton so good.

“He can hit it harder than anyone, first of all,” Boone said. “So there’s the physical nature of what he does that’s different than just about everyone in the world.”

But Boone went on to compliment Stanton’s discipline at the plate, “his approach, his process, how he studies guys.”

“There’s something that he does when he gets familiarity with people on top of being very physically gifted,” Boone said.

The Guardians took a 2-0 lead in the fifth off Carlos Rodón on Steven Kwan’s RBI single with two outs. But Cleveland missed a big chance for more, leaving the bases loaded when Lane Thomas grounded out on the first pitch to him from Mark Leiter Jr.

TRAINER’S ROOM

Yankees: LHP Nestor Cortes (elbow strain) had another successful live batting practice session. The reliever remains on track to join the Yankees on their World Series roster. Boone said Cortes would throw again early next week. Cortes went 9-10 with a 3.77 ERA in 30 starts.

___

AP MLB:



Source link

Continue Reading

Trending