Deutsche Telekom misinformed investors, says German court
The German Supreme Court (BHG) has accused Deutsche Telekom of inadequately informing potential investors buying shares in its 2000 IPO, Reuters reports.
Approximately 17,000 Deutsche Telekom shareholders claimed losses of €80 million in damages after a drop in the share price after the 2000 IPO, but the BHG has reportedly decided against ordering the operator to reimburse investors.
“It has not been finally decided if Deutsche Telekom will be obliged to pay damages due to the fault in its prospectus,” the court said in a statement today.
The share price at the time was €66.50 per share, of which Deutsche Telekom offered 200 million, yielding €13 billion in total proceeds.
Shareholders have said that Deutsche Telekom was too optimistic about the valuation of the company and did not correctly inform its investors.
Deutsche Telekom shares stand at around €13 today.