MTEL: 2005 accounts finally approved, clears the way for HUF 73 DPS

MTEL's shareholders finally approved its 2005 accounts despite the ongoing legal investigation into 4 contracts at TCG. This paves the way for the payment of 2006 dividends, which the company has previously set at HUF 73 per share. The company is expected to announce January 12, 2007 as dividend payment date, with the stock going ex-div on January 3. Our view: This has been widely expected by the market, and so we would not expect further material share price appreciation on the back of it after yesterday's modest gain. However, it removes an important overhang over dividend uncertainty as MTEL can now sign-off on dividend payment, which can be made 10 days following approval.