Globtel was launched in January 1997 and recording profits of $22.6 million last year. By the end of 2001 the company is expected to have 900,000 clients with 34% of Slovaks owning a mobile telephone.
Such a sell off has always been likely, Credit Suisse First Boston, consulting the government, had previously delayed the deal as as result of the weakness of telecoms stocks worldwide.
When first considered, an IPO would have raised approximately $700 million. Instead, the long process of appointing consultants and intermediaries prevented a flotation while telecom valuations were still high. The government is now expected to get much less than originally hoped.
