How the American regime jeopardizes the success of Deutsche Telekom



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Circus, riots and new targeted attacks against Germany have been on the agenda since Trump seized power. All appeasement makes it worse. Among them could also suffer the German Telekom (WKN: 555750) and its shareholders.

Critical Times for the Telekom

A few months ago, the CEO of Telekom Höttges happily announced the "historic" case of T-Mobile United States (WKN: A1T7LU) and Sprint (WKN: A1W1XE). His hope and hope is that the group can now enter a new dimension.

With the accelerated construction of a 5th generation wireless network (5G) and other billions of investments in collaboration with partners, such as Internet solutions of the objects supervisors should be lenient. Management has been very confident that it will work. But dark clouds are more and more numerous.

Furious protectionism dominates

In the simplified world of the American president, there is no place in the forefront for a company run by the former capital, Bonn. Why should it allow more profits to cross the Atlantic (or the Pacific) in the powerful telecommunications industry? It would be much better if the completely national competition makes the Reibach. That this is supposed to be short, it should be clear, but who can explain it?

Although the main local competitor AT & T (WKN: A0HL9Z) hardly better – but for a completely different reason. This would Time Warner (WKN: A0RGAY) incorporate, in order to forge an integrated Telco and media company. For Time Warner, but belongs to CNN, the station, which continually Trump's malevolence can be sincerely and widely discussed.

Despite the regime's likely stubborn intervention against the agreement, a court had authorized the takeover in June. Now it has been announced that the decision will be challenged – exit open. Other transactions have also been recently slowed down with strange reasons, so that a pattern can be seen.

Delays are to be expected

Telekom's plan is to finalize Sprint's agreement within a year, I do not believe it's feasible under current hostile conditions at the highest level of government. The telecommunications industry is too sensitive for this. So, instead of trying to get the approval of the authorities, it might be wiser to let some time go by until the dark clouds go away.

As a shareholder, I have no illusions. the United States in the short term can tear something big. I'd rather be disappointed to be happy when things get better

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Ralf Anders does not own any of the shares mentioned. The Motley Fool recommends T-Mobile US.

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