Deutsche Telekom halts plans to sell T-Systems unit
Deutsche Telekom has dropped plans to sell its T-Systems unit after a failure in negotiations according to business daily Handelsblatt.
In November of last year, it was reported that the company planned to sell its troubled unit and a deal was expected to be concluded this month.
Deutsche Telekom was also considering a spin-off of T-Systems, which it had already discussed with the German government, which owns a 30.5% stake in Deutsche Telekom.
T-Systems has been underperforming and its orders declined by around 25% during the pandemic.
In 2020, Christian Illek, Deutsche Telekom’s finance chief said that reduced IT spending in the automotive and airline industries would necessitate additional restructuring at T-Systems on top of an ongoing three-year turnaround plan.
In less related news, T-Systems recently joined the Eclipse Foundation to help develop technologies for digitally-connected vehicles.
The firm will work on open-source software for the automotive industry in the Software Defined Vehicle (SDV) Working Group.