United Internet shares jump as CEO considers controlling stake

Telefonica Deutschland Holding AG

05/11/2021 08:06

BERLIN, Nov 5 (Reuters) - Shares in United Internet
 UTDI.DE  opened 5% higher on Friday after the company announced
its founder and chief executive Ralph Dommermuth may buy a
controlling stake for almost 600 million euros ($693.30
million).
    Dommermuth is considering increasing his United Internet
stake to 51% from the current 42% for 35 euros ($40.44) per
share, the company said in a statement on Thursday evening.
    The CEO is negotiating with a major bank and has not yet
made a final decision, though he expects to present a potential
offer in December, United Internet said.
    Together with its mobile phone operator subsidiary 1&1
 1U1.DE , United Internet faces the challenge of setting up the
fourth mobile phone network in Germany alongside Deutsche
Telekom  DTEGn.DE , Vodafone  VOD.L  and Telefonica Deutschland
 O2Dn.DE .
    So far, 1&1 does not operate its own network but leases
services from Telefonica Deutschland and Vodafone, though it
bought frequencies in a 2019 5G auction and must now set up
around 1,000 base stations by the end of 2022.
    Speaking to Reuters in August, Dommermuth said: "We are late
and have lost a lot of time, but we can make up for that."
    Dommermuth did not say whether he wants to follow the
example of Xavier Niel in France, who bought the mobile phone
company Iliad he had founded and delisted it earlier this year,
saying the move would make it easier to manage necessary
changes.  urn:newsml:reuters.com:*:nL1N2P60D3

($1 = 0.8654 euros)

 (Reporting by Nadine Schimroszik; Writing by Zuzanna Szymanska,
Editing by Miranda Murray)
 ((zuzanna.szymanska@thomsonreuters.com;))