NYSE:KKR, Global Infrastructure Partners and Stonepeak Partners have teamed up on a binding offer to take a controlling stake in the €20B towers unit of Deutsche Telekom (OTCQX:DTEGY), Bloomberg reports.
They're competing (at minimum) with a consortium of Brookfield Asset Management (BAM) and Cellnex Telecom (OTC:CLNXF).
But Vodafone's (VOD) Vantage Towers (OTCPK:VTWRF) could find a partner or jump in solo, as it's expressed interest in DT's towers, and Bloomberg previously noted DigitalBridge Group (DBRG) was evaluating the business.
Cellnex already jointly owns towers with Deutsche Telekom in Switzerland and the Netherlands, Bloomberg reported. But Germany represents a market where Cellnex has yet to get a foothold.
A move to take control of DT's towers would be the latest in a long series of transactions where struggling phone carriers have begun to shed infrastructure assets (often to private equity) in order to raise cash and save on heavy network investments.
Deutsche Telekom (OTCQX:DTEGY) is up 1% Friday afternoon in U.S. trading.