Lagardère’s stake in T-Online

The Lagardère Group has sold T-Online shares in an amount totaling, on the evening of February 4 2005, 55,9 million shares. The Lagardère Group also redeemed €592m of exchangeable bonds for T-Online shares (out of the €767m in issue).
Following these transactions, the Group owns 13,7 million T-Online shares, which remain available in the event that the exchangeable bonds outstanding will be exchanged.

History of Lagardère’s stake in T-Online

The Lagardère Group originally held 69,6 million T-Online shares, received in connection with the contribution of 100% of the Club Internet business to T-Online in February 2000.
On June 27, 2002, Lagardère SCA issued bonds exchangeable for T-Online International AG shares, covering 86% of the T-Online shares held by the Lagardère Group. This €767m bond issue had a 3-year maturity and an annual coupon rate of 2.5%.
On October 9, 2004, Deutsche Telekom announced its intention of merging with its subsidiary T-Online. Shareholders of T-Online International AG will be offered Deutsche Telekom shares in exchange for their T-Online stakes. To accommodate shareholders who would rather sell their shares, Deutsche Telekom announced a voluntary cash offer to buy back T-Online shares at a price of €8.99 per share.
On November 26, 2004, the cash offer was made (€8.99 per T-Online share). The offer period closed on February 4, 2005. On January 25, 2005, the indicative exchange ratio range was made public: it is expected to be between 0.45 and 0.55 Deutsche Telekom share for one T-Online share.