Reuters yesterday quoted CT CFO J. Sedivy as stating that the company’s June 14 AGM should approve either: a share buyback, a large dividend, or the acquisition of the remaining 49% stake in EuroTel.
We expect talks with the EuroTel minority owner Atlantic West to be resumed first (CT reportedly bid USD 1.1 for the 49% stake in EuroTel in November but did not reach a deal; we value the stake at USD 1.27 bil.). If these talks are unsuccessful, a large dividend or a leveraged share buy-back should take place, resulting in capital structure optimization. We believe yesterday’s stock price appreciation was partially attributable to the CFO’s comments.
(Jiri Soustruznik)