According to weekly Tyden, Augustus is suing Telefonica O2 CR for CZK 300m (EUR 10.7m). Augustus asks for compensation of lost profit (1995 – 2001) after Telefonica O2 CR abandoned a contract for issuing phone cards. According to court decision from August 2006 Telefonica O2 CR has to pay CZK 83m (EUR 3m). Note that Telefonica O2 CR holds 40% stake in Augustus. The verdict should be taken this year. Our view: We believe that Telefonica O2 CR has created provisions for possible loss. We see news as negative but we do not expect any impact for today’s trading. We reiterate our Hold recommendation for Telefonica O2 CR.