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IN BRIEF / AUTOS

Daimler Sells Unit to Telekom

January 12, 2002|Bloomberg News

DaimlerChrysler forced Deutsche Telekom, Europe's most indebted phone company, to buy a software venture they now jointly own for $4.1 billion in cash, two years earlier than planned.

The auto maker, which has $16 billion of debt coming due this year, sold 50.1% of Debis Systemhaus to Deutsche Telekom in March 2000, when technology stocks reached record highs. DaimlerChrysler exercised an option to sell the rest of the unit Jan. 1 and the sale will be completed by the beginning of March, the firms said.

DaimlerChrysler wants cash as it tries to turn around its unprofitable Chrysler unit in the U.S. Deutsche Telekom is burdened with $58.9billion of debt from acquisitions.

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