The sale of the remaining state’s stake in Cesty Telecom on the capital markets is possible

) As reported by Bloomberg, the deputy Transport and Communication Minister Marcela Guerlichova yesterday said that a 51% stake in Cesky Telecom will be offered for sale, and may or may not include the stake of TelSource, (this depends on TelSource’s intentions). More importantly, she said, “the next sale would probably be on the capital markets”, although the final decision depends on the privatization advisers .

M. Guerlichova also said that the FinMin expects there will be a higher demand for the stake in CT in case it has a full control over Eurotel and therefore CT is willing to buy additional 49% in Eurotel. Most of this information is in line with expectations. Only the hints on the possible sale of the remaining stake on the capital markets could raise concerns about possible CT stock oversupply.

The Czech Press Agency reported yesterday that regulation office chairman David Stadnik said it is likely that the Cabinet will discuss the auction selling price of the three UMTS licenses next week. (The auction will have only one round, the auction bids are to be submitted by November 30, and the licenses are to be awarded by December 14). Should the opening price be CZK 6.7 bil. per license, as indicated in the past by the regulator, we expect the three incumbent operators to stay out of the auction, and we do not expect any outside interest at this price. A new tender would then have to be held next year. Alternatively, a lower opening price could produce three license holders.

Mr. Stadnik also said that the Cabinet delays sector liberalization to boost CT’s attractiveness in privatization.

(Jiri Soustruznik)