Delay in the Cesky Telecom privatization schedule possible

The Czech Press Agency (CTK) quotes Prime Minister Milos Zeman as saying that a newly elected Cabinet could privatize Cesky Telecom more successfully than the current one (the next general election will take place in June 2002), because of the prospect of rising prices of telcos. The current CT privatization schedule calls for investors to express preliminary interest by December 19, and preliminary bids should be submitted by January 9; the tender winner would be selected by the end of March 2002. The privatization delay itself would be negative, though its impact on the stock could be mollified by the prospect of a possible higher privatization price. Separately, Cesky Telecom announced that it will call CZK 7 bil. of its bonds (maturity in 2004) in February 2002. Neutral.

(Jiri Soustruznik)