Deutche Telekom close to selling Media & Broadcast unit

Deutsche Telekom is close to selling its Media & Broadcast unit to France's TDF for an overall consideration of 800 million euros ($1.1 billion) to 900 million euros ($1.3 billion), industry sources, quoted by a Reuters report, said.

The Reuters report said Media & Broadcast, which has annual revenues of about 500 million euros ($723 million), provides services for broadcasters and other media organizations and is part of Deutsche Telekom's business service unit T-Systems.

The supervisory board of T-Systems had already approved the deal, one person told Reuters.

The agreement had not yet been signed but Deutsche Telekom was very close to closing the deal, another person said.

Deutsche Telekom and TDF, whose biggest shareholder is investment firm TPG, declined to comment.

Industry sources said that Australian bank Macquarie had also put in a bid for the unit but that TDF was a better strategic fit.

TDF specializes in services to broadcasters and is active in France, Spain, Finland, Estonia, Monte Carlo, Poland as well as Hungary.

At the beginning of this year a German magazine had said Deutsche Telekom hoped to get up to 1 billion euros ($1.45 billion) from the sale of the business.