T-Systems is in merger talks with Atos Origin – report

Deutsche Telekom’s business customer and IT division T-Systems is in talks with France-based IT service provider Atos Origin to merge or to set-up a joint venture, reports the Financial Times Deutschland, citing persons close to the talks. The companies are in talks since a couple weeks and if an agreement is reached is still open. T-Systems is also talking to other possible partners including IT service providers EDS and Capgemi. Both T-Systems and Atos Origin did not want to comment to the rumours.Deutsche Telekom is reacting to a drop of T-Systems’s operational profit (EBIT) during the last three financial quarters to reach EUR 163 million on revenues of EUR 9.3 billion. A partnership could increase the critical mass of T-Systems outside Germany, which is currently the revenu driver of T-Systems. It is unclear of new DeTe CEO Ren© Obermann was the architect of the partner talks or the talks are the last trick of Kai-Uwe Ricke, who left as Deutsche Telekom CEO on 12 November.

Source-  telecompaper  Wireless Mobile Telecom