The Czech weekly Euro reports that the Czech government and TelSource reached an agreement late last week on the joint sale of their CT stakes (they were due to enter an agreement by this week). According to Euro, the plan is to combine 34% of the government’s stock and 17% of TelSource’s into a 51% stake to be sold to a strategic investor. (Overall, KPN and TelSource now hold a combined 33.5% stake, the state holds a 51% stake, and some combination of their respective stakes toward a sale had been expected.) If confirmed, the agreement would be a positive development for the company as it paves the way for privatization, but we do not expect any major response from the stock. The next step is for the finance minister to submit a CT privatization strategy for Cabinet’s approval before the end-of- June deadline. The Cabinet’s decision should, among others, address the issue of how to dispose with the state’s remaining 17% stake, with a public float being an option.
(Ondřej Daťka)