Eurotel: no dividend before Telecom merger is completed

28 Jun 2006

Czech mobile operator Eurotel Prague will not pay out a dividend before its merger with parent company Cesky Telecom is completed, according to Martin Zabka, a spokesman for the company. The amalgamation is scheduled to take place in the summer. In recent years Eurotel has paid out between CZK3 billion and CZK5 billion (USD132.9 million to USD221.6 million) twice a year to Cesky, which has received more than CZK20 billion in the last two years alone. However, Cesky Telecom is now 70% owned by Spain´s Telefonica, which bought into the company last year. After the merger, Telecom plans to name its mobile arm Telefonica O2 Czech Republic.

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