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Holding arrangement concluded between KfW and German Federal government

Frankfurt/Main (ots)

In the context of a further holding
arrangement KfW yesterday acquired shares of Deutsche Telekom AG
(Telekom) and Deutsche Post (Post) from the German Federal
government. The arrangement covers altogether 4.7 % (approximately
199 million shares) of the share capital of Telekom and 30 %
(approximately 334 million shares) of the Post. As a result KfW will
hold stakes of about 16.7 percent (approximately 703 million shares)
in Telekom and 48.3 percent (approximately 537 million shares) in the
Post. The purchase price is EUR 5.5 billion.
As was the case with previous holding arrangements, KfW acquires
the shares at a clear discount to the current market price. At the
same time the federal government receives a debtor warrant, according
to which KfW has to pay any excess proceeds earned when the shares
are resold on the market to the government. In July of this year KfW
for the first time placed EUR 5 billion of bonds exchangeable into
shares of Telekom in the capital market.
In the framework of the transaction KfW also receives a
subordinated loan of EUR 500 million from the Federal government.
Interest on the loan will be in line with market conditions. Thus,
the share purchases will not have any adverse effect on KfW's equity
ratio. KfW's promotional strength is fully retained in the future.

Contact:

Nathalie Drücke
Tel. +49/69/7431-2098
E-Mail: nathalie.druecke@kfw.de