Following yesterday’s Bloomberg reports on possible legal risks associated with a fully marketed offering in the case of a capital markets privatization, the prime minister’s economic advisor Jan Mladek said that accelerated book building seems to be the most likely outcome (if the Cabinet decides for a capital markets option) based on the precedent set by the sale of TelSource's 27% stake in CT in December 2003. Mladek added that he would favour keeping both options (a tender and a capital markets transaction) open until March or April 2005 to get a clearer picture on investor interest.
Note that the privatization committee, the Ministry of Finance and another 10 out of 18 ministries originally favored a capital markets transaction. However the Hospodarske noviny daily reported that some ministers may be changing their minds after Swisscom's interest. The Cabinet is expected to make a final decision on the privatization form on Wednesday, December 1.
Tomáš Gatěk, Patria Finance