KPN has confirmed that it wants to sell its entire stake in Cesky Telecom as part of its exit from Central and Eastern Europe. KPN has a 33.5% stake in CT, either directly or through TelSource (KPN/Swisscom), and has been negotiating for some time with the government about coordinating its exit with the government’s effort to sell its 51% stake. This is not news. What is news rather is a report in the Czech HN business daily that - according to a “well informed source” - France Telecom is now the more likely candidate for Cesky Telecom. Although tender for the government/KPN stakes has launched, Deutsche Telekom has been seen the unofficial frontrunner, but there the issue is complicated by the fact that Deutsche controls the No. 2 Czech cellular operator (RadioMobil), and Cesky Telecom has 51% in the No. 1 cellular operator (EuroTel).
Cesky Telecom releases its full IAS consolidated financials today at 10.30 AM CET. We do not expect them to reveal anything, which will move the stock given that selected preliminary figures for 2000 were released in February (a net income of CZK 6.4 bil. on revenues of CZK 57.2 bil.). The figures will be useful mainly for analysts and their models. More important may well be Friday’s company presentation.
(Ondřej Daťka)