It’s Official: T-Online Buys the Spanish

[Berlin, GERMANY] Deutsche Telekom’s Internet service T-Online is taking over, the
second largest Internet portal in Spain, for approximately Euro 550
million (almost US $490 million) in stocks and cash. As the company
announced in Darmstadt today, the acquisition will be completed by this
fall. T-Online is currently active in France and Austria and will start-up
operations in Switzerland shortly.

The takeover was largely financed through an increase in capital with
the issuing of 15.25 million new stocks for’s stockholders; an
additional Euro 100 million (US $89 million) in cash is also to change
hands. According to T-Online, the stocks issued are worth approximately Euro
450 million (US $400 million). Four hundred thousand of the 2.3 million
registered customers also use for Internet access, according to
T-Online. Furthermore, is also active in Portugal. According to
reports in the media, the takeover could allow the German company to
not only establish itself in the Spanish market, but also to
prepare to expand its business into Latin America.

In the past weeks, T-Online had said that it was not interested in
taking over In the previous weeks there had merely been a few
conversations. Sources close to the company report that the
conversations were interrupted when T-Online’s CEO, Wolfgang Keuntje,
surprisingly stepped down.

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