Telecom sale back on again… but they’d better be quick

4 Apr 2005

Telefónica’s EUR2.7 billion acquisition of the Czech Republic’s 51.1% stake in Cesky Telecom looks set to go ahead after the incumbent government administration narrowly scraped through an opposition vote of no confidence on Friday. Despite winning the ballot, the government has gained only a temporary reprieve after the president, Vaclav Klaus, quickly demanded another vote in the wake of a number of key ministers offering their resignation. Prime Minister Stanislav Gross and his coalition government only just clung onto power in the face of stern opposition from a rightwing opposition coalition headed by the Civic Democrats and Christian Democrats, after the Communist Party abstained from voting. However, analysts predict that any second vote will come too late to stop Gross rubber-stamping the long running Cesky Telecom sale.

Czech Republic, O2 Czech Republic (incl. CETIN), Telefonica