Ain't good news for networkers. DT may cut spending to reduce its debt - FT
LONDON, Sept 17 (Reuters) - German telecommunications company Deutsche Telekom says it may cut 2002 capital expenditure to meet a debt reduction target, the Financial Times reported on Monday.
The company held net debt of 65.5 billion euros at the end of June but has vowed to cut that figure to 50 billion euros by the end of 2002, the FT said.
In an interview with the Financial Times, DT's Chief Executive Ron Sommer said he was confident the company could hit that target because of its flexibility on planned 2002 capital expenditure of 11.5 billion euros.
``There is room for manoeuvre with the capex, which we could cut without damaging our current growth forecast,'' Sommer told the London daily.
The FT said falling share prices could affect DT's ability to meet its 2002 debt target, mainly by threatening the proposed flotation of its mobile arm, T-Mobile.
Scheduled for next year, the flotation is expected to raise about 10 billion euros.
Sommer's comments on a possible cut in capital expenditure could spark anxiety among telecom equipment makers since DT is one of the world's largest purchasers of their products, the newspaper said. |
