The Prague Business Journal reports today that Cesky Telecom appears to have succeeded in reducing the price to be paid for the remaining 49% in Eurotel stake to USD 1.1 bil. (down from the preliminary agreed price of USD 1.475 bil.), according to “several sources close to the transaction.” We believe that this 25% reduction would be seen as positive for the stock, though it may be already partially reflected in the current stock price (a USD 1.1 bil. purchase price has been mentioned recently as desirable by the deputy finance minister). We would consider this price a good one for Cesky Telecom.
The PBJ also reports that Kohlberg Kravis Roberts; Providence Equity Partners; Doughty Henson & Co.; CVC Capital Partners; and Warburg Pincus are among the financial investors that might be interested or have expressed interest in the government’s sale of Cesky Telecom (financial investors will be allowed to bid, though only in combination with a strategic investor’s bid). Government officials have indicated in the past that a number of financial bidders are interested in CT, i.e., this list of names is unlikely to have much impact on the stock price.
(Ondrej Datka)