Last December, the sale of the government’s 51% stake to a consortium of Deutsche Bank and TDC of Denmark for 1.82bn euros ($2.08bn) collapsed when minority shareholder the TelSource consortium, made up of KPN NV and Swisscom AG, decided it wanted the same amount for its minority stake as the government was receiving for its majority stake.
The Czech government is hoping for renewed interest in its 51% stake due to the improved economic outlook and Cesky’s decision to gain full control of Eurotel, its profitable mobile operation. In June, it paid $1.05bn in cash to buy the remaining 49% held by Atlantic West BV, a joint venture of Verizon Communications Inc and AT&T Wireless. As of March, Eurotel had 3.95 million subscribers, which represents 44% of the Czech market.
The government is thought to be considering three options: to sell the 51% stake in Cesky Telecom, to sell only a portion, or to privatize Eurotel and keep Cesky Telecom in state control.
IT minister Mlynar said the Czech cabinet will announce its final strategy by the end of the year. He said negotiations with strategic investors should start next year, and the sale could also be completed in 2004, although it depends on investor interest.
Last month, the Prague-based telco announced it was axing 1,800 employees, bringing its total staff down to 10,900.
This article is based upon material originally published by ComputerWire
