Telefónica in negotiations with PPF - how much will be paid for the Czech and Slovak operations?

Unnamed sources told local media (HN) that talks between Telefónica of Spain and PPF have reached an advanced stage and that the main question is the price PPF would pay for the Czech and Slovak operations. Telefónica wrote in a regulatory filing that it is examining the strategic possibilities regarding its Czech unit, including talks with PPF. Petr Kellner recently met with Telefónica’s CEO, César Alierta, according to local media. / We do not expect significant premium for the majority stake in TEFO2 (331,3 CZK, -0,78%), if any, given its current valuation. We think that PPF as likely the only bidder could negotiate a good price for the stake. Note that TEFO2 trades at 6x EV/EBITDA 2014 while regional peers trades at 4.5x