May 13, 2015 / 9:18 AM / 5 years ago

UPDATE 1-DT bidding EUR 900 mln for Slovak stake in Telekom - sources

(Adds no comment from DT, background, DT results)

BRATISLAVA, May 13 (Reuters) - Deutsche Telekom has offered 900 million euros ($1.01 billion) for the 49 percent stake the Slovak state is selling in fixed and mobile operator Slovak Telekom, two government sources said on Wednesday.

The government cancelled a share listing last week, saying it received a better offer from a strategic investor than the 750 million euros it would raise through the initial public offering (IPO). It is expected to discuss the offer in the coming days.

Deutsche already owns 51 percent of the company.

The Slovak economy ministry declined to comment.

Deutsche Telekom declined to comment on the Slovak Telekom stake specifically, but its chief executive Tim Hoettges said in a conference call after the firm’s results on Wednesday that the company had previously stated that they would be interested increasing its stakes in its European businesses.

He also said that Slovakia was an important part of its strategy, but it was too early to speculate about any outcome.

Slovak Telekom is the main player in the fixed-line market and No. 2 mobile operator in the euro zone country of 5.5 million people, behind Orange and ahead of O2 Slovakia .

Slovak Telekom reported 2014 earnings before interest, tax, depreciation and amortisation (EBITDA) of 310.7 million euros on sales of 767.6 million.

Deutsche Telekom has made Europe to its main priority. Earlier this year it said that it would invest 6 billion euros in the next four years to get all of its services in Europe on one called Internet Protocol or IP-platform, which will save DT hundreds of millions in costs.

At the end of 2013 for instance Deutsche Telekom bought GTS Central Europe, a telecommunications service provider with network and data centre infrastructure, focused on serving business customers, for 546 million euros.

Deutsche Telekom beat expectations with an 11 percent rise in quarterly profit helped by its U.S. operations and the weak euro, the company reported on Wednesday.

Earnings before interest, tax, depreciation and amortisation (EBITDA) excluding special items rose to 4.57 billion euros ($5.15 billion). ($1 = 0.8902 euros) (Reporting by Jan Lopatka and Tatiana Jancarikova; Additional reporting by Harro Ten Wolde)

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