The Czech daily MFDnes reports that TelSource, which owns 27% in Cesky Telecom, considers the latest Deutsche Bank/Blackstone/TDC bid in the recently canceled Cesky Telecom privatization tender as satisfactory, especially given the relatively downward assessment of the worldwide telecom sector. The consortium offered CZK 55 bil. for the 51% state’s stake (CZK 335 per share).
Moreover, Minister of Transport J. Schling said that the next feasible occasion to sell the state’s stake in CT will be, in his opinion, not earlier than in a two-year horizon. Nevertheless, we consider the scenario that the government will revise its decision as unlikely.
Separately, the Czech Press Agency quoted CT CFO J. Sedivy as saying that pressure on CT revenues will intensify after the call-by-call choice of operator is launched in the Czech Republic in July 2002. This is largely expected.
(Jan Hajek)