Drillisch AG (DRI) slumped the most ever in Frankfurt trading after Deutsche Telekom AG (DTE) said it canceled cooperation and filed a criminal complaint against the German provider of phone services.
Drillisch fell 40 percent to 5 euros at the 5:30 p.m. market close in the biggest plunge since the company first sold shares in 1998. That propelled the stock to an 18 percent drop this year, valuing the company at 266 million euros ($365 million). Drillisch said Deutsche Telekom’s accusations are “groundless.”
Deutsche Telekom, Europe’s largest phone company, said in a statement that it’s calling off an alliance with Drillisch with immediate effect after a unit of the Maintal-based company activated “several tens of thousands” of prepaid mobile-phone connections since February that weren’t based on actual customer relationships. Deutsche Telekom said it wants repayment of less than 10 million euros and that Drillisch customers will continue to be able to use its network.
Drillisch buys access to networks from operators like Deutsche Telekom and Vodafone Group Plc (VOD) and sells phone services to customers with a focus on the no-frills segment. It served about 2.5 million customers as of the end of June. Chief Executive Officer Paschalis Choulidis said in a phone interview that the company can refute Deutsche Telekom’s complaint and that the dispute won’t affect earnings.
Deutsche Telekom filed the legal action in a court in Hanau, Germany, said Philipp Blank, a company spokesman.
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