Cesky Telecom’s CEO said yesterday that the company is evaluating the financial risks that have resulted from the situation in the U.S. with regard to the planned acquisition of the remaining 49% stake in Eurotel (we believe he was referring mainly to the impact of events in the U.S. on the cost of funding of the acquisition—the company plans to issue bonds—and possibly to the impact on Eurotel’s valuation). He also said that the transaction has not yet been closed. We consider it unlikely that the recent events in the U.S. would lead to Cesky Telecom abandoning the deal. Neutral.
Separately, the CEO also said that the state will likely bear some of the cost (of several billion Czech crowns) of re-numbering domestic fixed-line phone numbers, planned for September 2002.
(Ondřej Daťka)