Both privatization consortia (Deutsche Bank/Blackstone Group/TDC and Swisscom/CVC Capital Partners/Spectrum Equity Partners) in the Cesky Telecom privatization tender submitted new bids on Friday, though reportedly neither raised their first-round bids (reportedly at CZK 335 per share) as requested by the government. This was widely expected.
The Cabinet might now decide to continue with direct negotiations with the bidders, since it is pressed for revenue by a tightening fiscal budget. Nevertheless, should CT not be privatized soon, company management would likely continue CT restructuring (capital structure optimization, EuroTel acquisition).
The privatization committee for CT is scheduled to discuss the second-round bids today, and the Cabinet might reportedly discuss the bids on Wednesday at its regular weekly meeting. Source: Czech Press Agency.
(Jan Hajek)