With no "Plan B," stark choices face D.Telekom

The U.S. block on Deutsche Telekom's $39 billion sale of its U.S. unit throws CEO Rene Obermann's strategy into disarray and may force him to throw money at a business he thought he was rid of.

The announcement by the U.S. Department of Justice on Wednesday that it was suing to prevent AT&T Inc's purchase of T-Mobile USA caught Obermann and his management team by surprise. Company officials say they have no "Plan B," beyond fighting to keep the deal on track.

Should it collapse, as many analysts and bankers believe it will, sources close to the company say Deutsche Telekom would be faced with a stark choice: seek another buyer at a lower price, or hang onto it and invest 10s of billions of euros to restore its competitiveness.

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- Posted: 2011-09-01 11:02:14

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