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Threat to VoiceStream buy
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December 21, 2000: 9:53 a.m. ET
Decline in Deutsche Telekom shares could derail $46B U.S. takeover
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LONDON (CNNfn) - Deutsche Telekom AG shares on Thursday fell below the crucial  33 ($30) level that could scuttle its acquisition of VoiceStream Wireless Corp.
Germany's dominant phone company saw its shares fall more than 6.1 percent to 32.85, its lowest this year. Under the terms of its acquisition, VoiceStream has the right to renegotiate the $46 billion buyout if Telekom shares averages less than 33 for seven days within the 15 day period before the sale closes.
Analysts have been critical about Telekom's acquisition of VoiceStream (VSTR: Research, Estimates), saying it is paying too much, and are worried about its growing debt mountain, which stands around $55 billion, accumulated from mergers and acquisitions of third-generation mobile phone permits.
In July, VoiceStream agreed to be acquired by Deutsche Telekom for in a cash and stock deal. The acquisition, which still awaits clearance from U.S. regulators, is expected to be completed in the first half of next year.
Deutsche Telekom's stock retreated Thursday after telecom investors were unsettled by a series of profit warnings from industry peer AT&T Corp (T: Research, Estimates) and telephone equipment maker Lucent Technologies Inc. (LU: Research, Estimates). 
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