Magyar Telekom announced that its Supervisory Board had decided to call an AGM to be held on November 15, 2006 which will decide on the approval of the company’s 2005 annual report and on the dividend payment. The agenda of the General Meeting will include discussion of the company’s 2005 annual report as well as the proposal on the dividend payment – according to the statement.
Our view: We see that the AGM invitation is somewhat misleading as many market participants understood it in a way that MTEL’s 2005 numbers are finally audited. However, the company informed us, they had to call the AGM for technical purposes taking into account the FED’s regulations, not because the 2005 annual figures are audited. In the lack of audited figures, the AGM cannot discuss dividend payment proposals. We could see some negative market reaction as a correction of yesterday’s positive reaction.