Cesky Telecom to bid reportedly USD 1 bil. for the 49% stake in Eurotel

The Czech deputy finance minister, Tomas Potmesil, suggested (the Dow Jones reports this morning) that Cesky Telecom could bid USD 1 bil. for the remaining 49% stake in the Eurotel mobile operator. If this price is not achieved, the government will have to privatize Cesky Telecom without the company acquiring 100% of Eurotel, Potmesil suggested. USD 1 bil. would represent a 32% reduction from the preliminary price of USD 1.475 bil. agreed between Cesky Telecom and Verizon Communications & AT&T Wireless in July. Although the suggested USD 1 bil. price may be just the opinion of a government official, it may lead to a positive response by the stock, since the market may use it as a guide for what Cesky Telecom’s revised bid (which has been recently submitted but not disclosed) could be.

Separately, the sector regulator (the CTU) will soon decide on fixed-to-mobile interconnect fees, around which there is a dispute between Cesky Telecom and two largest mobile operators (Eurotel, RadioMobil). The decision should be taken in mid-November.

(Ondrej Datka)