The National Property Fund has confirmed that the Cesky Telecom AGM agenda amendment (a decision on distribution of 2001 profit and profits from the previous years; dividend policy of the company) was initiated by a minority shareholder, not by the NPF (the NPF is the majority stakeholder in Cesky Telecom). The amendment led the market to believe there would be a dividend exceeding 2001 EPS, which amounted to CZK 19. Although this is still possible, the NPF’s stance on the proposal is less predictable now.
Regarding the AGM, Cesky Telecom has not confirmed the dividend record date proposal, which leaves the market to speculate on the matter. It could be set as the same date as the AGM (June 14), though last year the dividend record date was set as one month after the AGM’s. Should the dividend record date be set at June 14, Friday, June 7, is the last date the stock could be purchased with dividend rights. Also, based on the above, it is not clear whether the stock will trade ex-dividend as of Monday, June 10.
Separately, Cesky Telecom announced that it will offer fixed-line users two new pricing programs, which do not include call credits. This corresponds to regulator`s requirement. Neutral.
(Jiri Soustruznik)