State Treasury ministry wants to add TPSA to the list of 15 companies of strategic importance, in which the State holds a golden share – the right of veto over shareholder decisions relating to strategic security, according to press reports.
Our view: The State has not made any use of its golden share in other companies so far, therefore we would view the news as potential, rather than real, threat to TPSA liberty, especially over its investment decisions. We would not exclude, that the motif for the ST request lies in its efforts to sell its 3.55% stake in TPSA to France Telecom. We view the news as negative, but do not expect any major price impact. We reiterate our Hold rating for the stock.