The Czech Lidove Noviny newspaper reports today (without identifying its source) that Deutsche Bank is among the bidders for the government’s and TelSource’s stakes in CT. According to the newspaper, DB is willing to pay up to USD 3 bil. (CZK 109 bil.) for the combined 78% stake, which amounts to some CZK 435 per share. The figure is at the bottom of the price range that the government considers acceptable (according to earlier unofficial reports, the government might accept CZK 70 bil.–80 bil. for its 51% stake, implying a valuation of CZK 425-485 per share).
Also, the Prague Business Journal weekly reports today that OTE of Greece has joined the bidding, according to “three sources close to privatization.” The PBJ also quotes a source “close to investors” that investors’ bids (for the government’s 51% stake) will be closer to CZK 50 bil. (CZK 305 per share), respectively. The above news is not positive for the stock, though its response to the reports might not be significant.
Separately, due diligence in Cesky Telecom should have been completed yesterday. The deadline for binding bids has not yet been set, but we expect it in the second half of March.
(Ondrej Datka)