Cellnex offers stake to Deutsche Telekom as part of towers bid

Spain’s Cellnex has offered Deutsche Telekom a small minority stake in its business as part of efforts to take control of the German firm’s towers unit in a deal worth about 18 billion euros ($18.8 billion), sources told Reuters.

Cellnex, Europe’s largest mobile phone tower operator, recently submitted a binding offer for Deutsche Funkturm GmbH (DFMG), Deutsche Telekom’s towers business, four sources close to the matter said on condition of anonymity.

The bid plan, backed by with Canada’s Brookfield Asset Management BAMa.TO, will also allow Deutsche Telekom to retain a minority stake in DFMG, one of the sources said.

Meanwhile, Vodafone has dropped out of the auction after initially seeking a strategic combination of its Frankfurt-listed towers business, Vantage Towers VTWRn.DE, with Deutsche Telekom’s DFMG, said a separate source familiar with Vodafone’s strategy.

A Vodafone spokesperson said the company was exploring its options “including discussions with potential industrial partners”. Nasdaq