MTEL did not bid for Telekom Srpske

MTEL confirmed that they have not bid for Telekom Srpske, as widely speculated. The Bosnian privatisation agency has announced that Telekom Austria and Telekom Srbija were the 2 bidders that have tendered a bid as of the close of the process last Monday. The government said that they expect no less than EUR 400m for the two-thirds stake, valuing the company at over EUR 600m.

Our view:
We view the news positively as it eliminates one M&A risk that could jeopardise future dividends. Romtelekom is the only other substantial asset left that fits MTEL's acquisition criteria, but we attach a low probablity of successfully acquisition given the other larger interested entities with deeper pockets.