SdK, a German private shareholder group, has filed a lawsuit challenging T-Online's International AG's merger with the company's parent Deutsche Telekom AG.
The merger is part of a plan "deliberately designed to hurt minority shareholders," Munich-based SdK said Monday in an e- mailed statement. The group filed the suit in the district court of Darmstadt, where T-Online is based.
Bonn-based Deutsche Telekom, seeking to boost sales at its traditional fixed-line unit, offered 0.52 of its own share for the rest of T-Online so it can reintegrate the division. Deutsche Telekom already owns 90.1 percent of T-Online and the merger was approved last month at T-Online's shareholder meeting.
DSW, Germany's largest group advocating rights of minority shareholders, said last week it would start legal proceedings to challenge the merger. Deutsche Telekom set aside 2.9 billion euros ($3.6 billion) for the transaction.
T-Online spokesman Michael Schlechtriem said the company hasn't yet been notified of the lawsuit. He declined to comment further. T-Online's shareholders have until the end of this month to initiate legal proceedings.