Preliminary privatization bids are to be submitted today. Reuters reported yesterday that an auction will be held in order to sell up to 78% of the equity ownership in Cesky Telecom (the combined stake of the National Property Fund [51%] and TelSource [27%], though selling only parts of these stakes remains an option). According to Reuters, the opening price will be USD 1 bil. (CZK 35.96 bil.), but it is not clear what equity stake this would entail (this is why the stock did not respond to the report on Tuesday). The official schedule envisages the selection of the best bids by March 31, though government officials have repeatedly suggested that the tender would be canceled if the bids are unsatisfactory.
The state received 25 expressions of preliminary interest in CT in December, though the number of preliminary bids is bound to be lower. The Czech Press Agency said yesterday that Warburg Pincus had teamed with Doughty Hanson and Apax Partners, and that CVC Capital had teamed with Spectrum Equity Capital. Reportedly, KKR and Advent International may also be interested in CT privatization. Financial investors can not bid alone though, they must join a strategic investor.
(Jiri Soustruznik)