Cesky Telecom: Today is the deadline for preliminary bids

Today at 5pm GMT is the deadline for submitting preliminary bids. Such bids should include a price offer and a strategic and business plan for the company, including for Eurotel. Ten companies have registered in the tender, among them six telcos (Swisscom, TDC, Vodafone, Telefonica, France Telecom and Belgacom) and four financial groups (Blackstone/CVC/Providence, Citigroup Venture Capital, PPF and SPO Partners). Financial investors are only allowed to make bids in consortium with a telecoms company. Yesterday, Reuters reported speculations from sources close to the deal that among the bidders only Swisscom would offer a relatively strong price and that frontrunner TDC might have dropped out of the deal. According to the Financial Times, too, Swisscom might be the lead bidder. The FT also mentioned as possible other bidders Vodafone, France Telecom, Telefonica and Belgacom. The Cabinet should decide whether to proceed with the tender – and shortlist the investor that will be allowed into due diligence - or to float its 51% stake on February 9 based on the number and quality of bids received. Any negative news regarding the number of bids and price offered would revive expectations of a capital market transaction, which could prompt a decline in the stock price.

Separately, today at 1pm CET Cesky Telecom is holding an EGM on supervisory board bonuses. No other major issue is expected to be discussed at the meeting.