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4-Traders Homepage  >  Equities  >  Xetra  >  Deutsche Telekom    DTE   DE0005557508

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EU's Preliminary Conclusion Finds Slovak Telekom Breached Antitrust Law

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05/08/2012 | 09:49am CET

European Union antitrust authorities said Tuesday they had reached a "preliminary conclusion" that Slovak Telekom has breached EU competition law, including charging unfair wholesale prices aimed at imposing a margin squeeze on competitors.

The EU also said in a statement that Slovak Telekom's parent company, Deutsche Telekom AK (>> Deutsche Telekom AG), "may be liable for the conduct of its subsidiary" because of "the nature and degree of its links" with Slovak Telekom.

Deutsche Telekom owns a 51% stake in the Slovak company.

The EU Tuesday delivered a statement of objections to the two companies, a formal step in the antitrust procedure where the EU informs the parties in writing about the objections raised against them.

The companies can still set out the relevant facts in their defense so the EU's move Tuesday doesn't prejudge the outcome of the investigation.

The case against Slovak Telekom is that it may have refused to supply unbundled access to competitors to parts of its network and may have imposed a "margin squeeze on alternative operators by charging unfair wholesale prices."

The EU also said Slovak Telekom had "used delaying tactics and obstructed negotiations" with competitors over access to the company's networks.

-By Laurence Norman, Dow Jones Newswires; +32 (0)2 741 1 481; [email protected]

Stocks mentioned in the article : Deutsche Telekom AG
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Sales 2017 75 085 M
EBIT 2017 9 805 M
Net income 2017 3 574 M
Debt 2017 55 216 M
Yield 2017 4,52%
P/E ratio 2017 19,66
P/E ratio 2018 15,84
EV / Sales 2017 1,65x
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Capitalization 68 708 M
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Average target price 17,5 €
Spread / Average Target 22%
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Timotheus Höttges Chief Executive Officer
Ulrich Lehner Chairman-Supervisory Board
Thomas Dannenfeldt Chief Financial Officer
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