The Czech HN daily reports today that Ceske radiokomunikace's parent company may be split into two parts, one including CR’s stakes in the cellular operator RadioMobil and the Internet and fixed-line service provider Contactel, and the other including the parent company (primarily radio and TV signal transmission). The reason for possibly splitting the company is the present lack of investor interest, which reportedly has left only TeleDanmark and Crown Castle International (CCI) as serious bidders. TeleDanmark may primarily be interested in the cellular and fixed-line telephony business and CCI in the transmission business, HN reports. None of this is official, but the newspaper quotes a “well-informed source” as suggesting the possible split. Given that talk of splitting the company adds to the uncertainty surrounding Ceske radiokomunikace, its structure, and the value of its stock, we see the report as negative for the stock today (though we still consider the stock undervalued from the fundamental point of view). Also, the suggestion that there are only two serious bidders will not help matters either (to date, Vivendi and Telecom Italia had been perceived as serious bidders as well).
(Ondřej Daťka)