A Finance Ministry spokesman was quoted over the weekend as saying that KB would not be sold as early as this week, contrary to what some ministry officials had recently suggested, and that negotiations with the top candidates (reportedly Societe Generale and UniCredito) toward the bank’s privatization will continue. A source close to KB was reported as saying that the top bid is “a bit higher” than what the press have reported (reports have suggested CZK 35–38 bil., or CZK 1,535-1,666 per share). Komercni stands to benefit today. We recommend holding the stock at the current price, with the possibility of reducing position at a higher level (CZK 1,200-1,300 range).
(Ondřej Daťka)