T-Online Enters Rocky Markets -- Successfully

BERLIN -- The initial public offering of Deutsche Telekom's (DT Quote) Internet service provider T-Online was considered a qualified success in light of the environment into which it was brought.

Yet, even though T-Online was able to brave the most uncertain of market conditions on Monday, it would be rash to suppose that this heralds a return to the heady days when any Web-related European stock had cash thrown at it. Instead, the experience of T-Online provides further evidence that investors are likely to be more selective in choosing European Internet stocks over the coming months.

Deutsche Telekom floated T-Online at 27 euros per share, which valued the spinoff at around $3 billion. While the rest of the markets in Europe were falling on Monday, shares in T-Online rose nearly 40% and on Tuesday were up a further 0.60 euros, or 1.6%, to 38.10 euros.

This should probably come as no surprise considering what T-Online represents. ...