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.