TDC should decide in two weeks whether it will buy a 50% stake in Contactel (an alternative telecommunication operator) from Ceske radiokomunikace (which holds the other 50%); its call option for the stake expires on May 2. TDC also owns a put option on the stake, which expires in 2005; the purchase or selling price would be determined by an independent appraiser.
Contactel is a loss-making business, and we believe the market assigns little value to it. Therefore, should it be purchased by TDC for a non-zero price, it would be positive for Ceske radiokomunikace stock; the opposite holds should Ceske radiokomunikace buy the 50% stock. Neutral news at the moment.
Separately, Ceske radiokomunikace’s AGM yesterday approved zero dividends out of the 2002 net profit. Ceske radiokomunikace is to today hold a press conference on the 2002 results.
Jiří Soustružník