On Friday, Ceske radio stock’s first ex-dividend trading day in SPAD, Reuters’ quoted a government source who had suggested that TeleDanmark’s bid was CZK 861 per share ex-dividend, implying a better price for the government’s stake than previously reported. This took the market by surprise and prevented the stock from losing as much as would have been expected on a first ex-dividend trading day (the dividend is expected to be around CZK 325 per share, and is to be approved at an AGM on April 19). However, TeleDanmark later issued statement, after trading had closed on Friday, which said that its bid of CZK 861 per share was cum-dividend. Given that the ex-dividend bid price implied by this bid (CZK 536 per share) is well below Friday’s close of CZK 673 per share, we expect the stock to sink toward this level today.
Separately, the Czech Cabinet is to make a key decision on the Ceske radiokomunikace tender today. A proposal to Cabinet reportedly calls for the tender to be “closed without a winner” and for further negotiations with TeleDanmark toward a better price than the above-mentioned bid. Cabinet press conferences usually take place late afternoon, after local markets close, but the release of earlier information cannot be ruled out.
(Ondřej Daťka)