Cesky Telecom: France Telecom allowed joining privatization tender

As expected, the Cesky Telecom privatization committee approved France Telecom’s participation in Cesky Telecom’s privatization. Note that France Telecom has joined the financial investors Blackstone/CVC Capital Partners/Providence. We remind that final bids are due on March 29 and that the Cabinet intends to choose a tender winner by the beginning of April.

Swisscom repeated that it could take up at least USD 8.5bn in debt for potential acquisitions. The Swisscom bid amounted to USD 2.7bn in the first round of the tender and was reportedly the lowest offer. The Swisscom CEO said the offer was just a tactical one, intended to allow the company into the final round of the privatization tender, and added that Cesky Telecom is of interest to it in the long run due to its market position and the growth of the Czech economy.

Separately, Cesky Telecom CFO Juraj Sedivy said the company can use up to EUR 1.5bn to expand abroad. CT is monitoring foreign markets but a final decision is to be made only after privatization. Sedivy added that the decision will be solely guided by financial aspects and by the expected return on the investment. Source: Euro