Deutsche Telekom has unveiled plans to launch a convertible bond of up to €3bn ($2.7bn), raising the spectre of a possible battle royal among the investment banks for what would be a highly coveted book-running mandate.

The huge German telecoms firm, which is fighting to reduce its €60bn debt burden, said on Tuesday it would be seeking shareholder approval on May 28 to sell a convertible bond deal worth a maximum of €3bn and with a maturity of around five years.