Deutsche Telekom, the German telecoms firm, may have to resort to raising fresh external capital to meet its debt reduction targets as it is unlikely to raise enough cash through asset disposals and flotations, according to bankers.

The firm, which aims to cut its net debt from €64.2bn ($62.3bn) at the end of June to €50bn by the end of 2003, has said repeatedly that it will not rush into disposals unless the market conditions are right.