The Czech daily MFDnes newspaper reports (without disclosing its sources) that only three consortia seem to remain in the bidding for Cesky Telecom, namely a Deutsche Telekom/Deutsche Bank consortium, a Swisscom/CVC Capital Partners/Spectrum Equity Partners consortium, and an OTE/Doughty Henson/Warburg Pincus/Apax Partners consortium. The paper also says that Deutsche Telecom, if successful, would sell Cesky Telecom’s 51% stake in the Eurotel mobile operator to Orange (DT already controls RadioMobil, the No. 2 Czech cellular operator, and wants to keep it). The paper also says that none of the consortia want to bid the CZK 80 bil. reportedly considered by the state as the minimum price for the 51% stake (the equivalent of CZK 485 per share), and that the bidding telecom companies do not want to bid more than CZK 50 bil. (CZK 305 per share). Deputy Transport Minister M. Guerlichova denied that the government had any limit price (which is somewhat surprising given previous statements by government officials). The paper’s report on the bidding is not encouraging, and might have a negative impact on the stock.
Separately, a National Property Fund spokesperson said on Friday that, following a decision by the government’s Cesky Telecom privatization committee, binding bids will have to be submitted sometime in the last week of March (as expected). The Cabinet should then receive a recommendation and discuss the tender results in early April (regular Cabinet meetings are scheduled for April 3 and April 10).
(Ondrej Datka)