Shares in Deutsche Telekom fell four per cent to fresh two-year lows today as investors lost faith in the company's management and probed to see how low the stock could go.
Telekom shares have fallen more than 10 per cent this week and market players have said the slide in the stock could prompt a renegotiation Telekom's planned merger with VoiceStream, on which its chief Mr Ron Sommer has staked his reputation.
Telekom dismissed market rumours in London and Frankfurt yesterday that Mr Sommer had quit.
"The stock has fallen through all technical support lines," said one trader. "The stock won't rise until it has found a floor. And that hasn't been found yet." he added.
In addition to facing investors' concerns about the VoiceStream deal, Telekom is laden with debts after last year buying next generation UMTS mobile phone network licences in Germany, Britain and the Netherlands.
Telekom shares were also hit earlier this week by Moody's Investors Service cutting its ratings outlook for the company to negative from stable and by doubts about the possible flotation of its T-Mobile cellphone unit.
Reuters