Deutsche Telekom has put future major acquisitions on the backburner, to protect itself from a fresh wave of financial problems in Europe.
The telco is focussed on building up cash reserves to guard against a second economic crisis, which it believes could be in the cards due to Germany’s national debt, and so won’t be making any large acquisitions in the near term, Bloomberg reports, citing an interview between CEO Rene Obermann and German daily Welt am Sonntag.
Despite his caution, Obermann said Deutsche Telekom remained committed to Greek carrier Hellenic Telecommunications, even though the International Monetary Fund has had to prop up the country’s economy.
He said the carrier was an important gateway into other central and eastern European countries, and that it is an important long-term play for Deutsche Telekom.
The CEO also backed T-Mobile USA, noting the division is still profitable despite a slowdown in growth.