After more than 20 years
Telecom process is heading for comparison
A settlement was proposed in the process of Deutsche Telekom’s third IPO. Photo: Oliver Berg / dpa
© dpa-infocom GmbH
More than 20 years ago, thousands also struck Telekom’s third IPO. After the drop in prices and lawsuits, there is now much to suggest that some of them could get their stake back.
A comparison is emerging in the investor protection process surrounding the so-called third IPO of Deutsche Telekom AG in 2000.
A proposal is on the table that is supported by the model plaintiff and other investor protection law firms as well as the defendant Deutsche Telekom AG, the Federal Republic of Germany and the state bank KfW. The Frankfurt Higher Regional Court announced on Monday. The proposal is to be discussed publicly between the parties to the dispute on Tuesday next week (23 November).
There are around 16,000 small shareholders who have been demanding compensation for the exchange rate losses they have suffered in the amount of around 80 million euros since 2004. The shares entered the market in June 2000 at a starting price of EUR 66.50. The all-time high of 103.50 euros was several months ago. Today the paper is quoted at around 17 euros and thus not too far from the original issue price in 1996, i.e. 28.50 D-Marks (14.57 euros).
According to the settlement proposal, which has not yet been resolved, the purchase price will be reimbursed to those investors who bought between May 27 and December 19, 2000 and who also always maintained their legal claims. Dividends paid in the meantime and the current market value would be deducted, since the securities are to remain with the buyers. Telekom did not want to comment on the possible costs on Monday.
Since the first lawsuits in 2001 and the first trial at the Frankfurt Regional Court in 2004, the judiciary has not finally resolved the matter. The approximately 12,000 lawsuits filed by the 16,000 investors were combined to form a model investor proceeding, whereby the selected model plaintiff has since died. The Federal Court of Justice has already partially overturned decisions by the Frankfurt Higher Regional Court twice, so that a third trial is now pending at the OLG. Should the desired settlement be reached, it should be offered to each individual plaintiff by June 30, 2022.