As expected, the European Commission approved the sale of 51% of Cesky Telecom to Telefonica on Friday. The market had already been pricing in a positive verdict since Telefonica has no other commercial interests in the Czech Republic. Within 10 days of the approval Telefonica has to pay the remaining 90% of the acquisition price of CZK 82.6bn. On the same day of the payment the shares will be transferred from the National Property Fund to Telefonica. Within 60 days of the settlement Telefonica has to call a minority buyout. The market will be closely watching for news or rumours regarding the buyout price. The 6MWA currently stands at about CZK 441. We expect Telefonica to take control of CT at the AGM of June 23 (decisive date June 21).