NEW YORK, July 5 -- Deutsche Telekom AG has made a deal with SBC Communications to buy the remaining 50 percent of MagyarCom GmbH that it does not already own. The $2.2 billion purchase will make the German telecom the major share holder of Hungary's chief telecommunications company.
SBC Communications had previously acquired a 50 percent stake in MagyarCom with the purchase Ameritech Corp. With the purchase of Ameritech, SBC got 50 percent ownership of MagyarCom GmbH, which is a holding company that owns 59.5 percent of Magyar Tavkozlesi Vallalat Rt. (Matav) -- Hungary's main telecom carrier.
Matav furnishes local phone services to about 74 percent of Hungary's population as well as long distance and international services until the end of 2001. Matav also controls 56 percent of Hungary's cellular phone market.
This is the latest in a number of recent expansions for Deutsche Telekom. Recently, the German telecom completed the $2 billion purchase of MediaOne Group's Central and Eastern European wireless businesses -- giving the German company access to mobile operations in Poland, Hungary and Russia.