PRINT THIS PAGE Private equity firms line up for Deutsche Telekom cable arm01/08/2002. Source: AltAssets. 
 A string of big name private equity firms are lining up to bid for Deutsche Telekom's television cable network. The debt-burdened telecoms firm is reported to have received indicative bids of between E2bn and E3bn, well down on Liberty Media's E5.5bn bid earlier this year.
The interested parties are reported to include: Apax Partners and US firm Providence Equity; CVC Capital Partners and Warburg Pincus; Goldman Sachs and Permira; US firm Hicks, Muse, Tate and Furst; and BC Partners.
Deutsche Telekom, like many of the world's major telecoms firms, is struggling to pay down the gigantic debt burden it built up investing in wireless businesses. It is estimated to have outstanding debts of around E67bn, with a target to reduce that figure to around E50bn by the end of 2003.
Private equity firms are well placed to benefit from the mass of telecoms disposals that are taking place around the globe. Many of them are sitting on substantial un-invested funds and can afford to be patient in waiting for valuations to drop.
Last month, Finnish telecoms firm Sonera sold a unit to a consortium led by the US private equity firm Carlyle, while France Telecom sold its transmission business to a consortium led by Charterhouse Development Capital.
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