TDC representative T. Holm said that the Bivideon consortium does not plan to offer a buyout to minority shareholders and does not intend to take Ceske radiokomunikace off public markets. He also said that Ceske radiokomunikace could sell its 50% stake in Contactel to TDC (which currently holds the other 50%) within two months. The absence of a minority shareholder buyout after privatization and the Contactel sale had been seen as likely, though the speed of the Contactel sale may be somewhat surprising.
Apart from the general disappointment at the low privatization price, there is also controversy concerning the deal’s conditions. Specifically, the deal approved by the Cabinet entitles the government to a 20-40% share of revenues from the possible sale of transmission assets. It is not clear whether Ceske radiokomunikace or Bivideon would pay this amount to the state. If it were Ceske radiokomunikace, minority shareholders would be disadvantaged. This may add to negative sentiment toward the stock.
(Ondrej Datka)