The Czech Cabinet should also today discuss a Ministry of Finance proposal that would alter the Cesky Telecom privatization strategy. Specifically, the proposal calls for a longer period toward the completion of the tender, to March 31, 2002 (from October 2001), when the Cabinet would receive a best-bid recommendation. Another important aspect of the proposal is that financial investors would be allowed to bid (though only in combination with a strategic investor). These changes have been cited in the past few weeks and are expected; therefore, the effect of an approved new privatization strategy on the stock should not be great.
Also, Ivan Pilny, who recently resigned his position of chairman of the board of directors at Cesky Telecom, will join eTel, one of Cesky Telecom’s important fixed-line competitors. Neutral.
(Ondrej Datka)