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The launch of Deutsche Telekom shares on the DAX index in 1996 was Europe's biggest stock offering at the time, with proceeds of $12.5-billion (U.S.).
The launch of Deutsche Telekom shares on the DAX index in 1996 was Europe's biggest stock offering at the time, with proceeds of $12.5-billion (U.S.).
(Michael Urban/REUTERS)

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Why minority stakes spell trouble for private equity

It is the beginning of the end for a big Blackstone misadventure. In 2006, the U.S. buyout firm spent €2.7-billion ($3.4-billion) on a small stake in Deutsche Telekom. It has just dumped a third of its underwater investment. The tale shows why private equity and minority stakes in big public companies don’t connect.