The IT ministry is scheduled to present Cabinet with a detailed Cesky Telecom (CT) privatization proposal by the end of 2003. The proposal includes two privatization scenarios: (i) a sale of the state's 51% stake in CT in a tender, or (ii) a sale of CT’s fixed-line and mobile businesses, while the state would keep control over CT’s telecommunication-infrastructure assets. Given minority shareholder TelSource’s recent announcement that it shall sell its 27% stake in CT, the final proposal might contain alternative options (CTK). Of the above, while the first privatization scenario is restricted by a lack of investor interest at present (which could persist), the second is inferior from a strategic/operational business perspective. The news is neutral at the moment, as it is premature to judge the preliminary considerations of the Cabinet.
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