Bonn  - Deutsche Telekom AG shares rose Friday after Europe's biggest phone company reported a fourth-quarter loss of 730 million euros (930 million dollars) and unveiled a major revamp of its business structure.

The result in the final three months of 2008 compared to 750 million euro loss for the same quarter in 2007, with the Bonn-based company saying it is combining its fixed-line and mobile-phone business in one unit.

Deutsche Telekom has been battling to address a big loss of fixed line subscribers from the company in the face of fierce competition in its domestic German market.

The company's shares rose 2 per cent to 9.67 euros following the release of the results.

However, the group's share price is still substantially lower than the 13 euros it was trading at 12 months ago.

Announcing its latest results, Telekom said adjusted group earnings before interest, tax, depreciation and amortization (EBITDA) came in at 19.5 billion euros in 2008.

Telekom is proposing to hold the company dividend at 0.78 euros a share. (dpa)