A private investment group has splashed out €2.7bn (£1.9bn) on a 4.5 per cent slice of German incumbent Deutsche Telekom (DT).

The investment, by US group Blackstone, is thought to signal greater acceptance by the German Government of overseas investment. For its part, Blackstone has agreed to hold onto the shares for at least two years.

Yesterday, the giant telecom company "expressly welcomed" the sale of around 192m shares from bank Kreditanstalt fuer Wiederaufbau (KfW).

DT chief exec Kai-Uwe Ricke said: "We are very pleased to have gained in Blackstone a shareholder with demonstrated expertise in the telecommunications sector. This also implies a further broadening of the shareholder base of Deutsche Telekom." ®

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