Turk Telekom lines up preliminary bid for Cosmofon

18 Dec 2008

Turkish fixed line operator Turk Telekom yesterday announced it has submitted a preliminary, non-binding bid to acquire Macedonia’s second largest mobile operator by subscribers, Cosmofon. No further details were provided in the firm’s statement to the Istanbul Stock Exchange.

Telekom Austria and Telekom Slovenije have both expressed an interest in purchasing Cosmofon, which is being sold by OTE of Greece. The Greek parent, which owns the cellco through its mobile arm Cosmote, is looking to offload the company for between EUR250-EUR300 million (USD336-USD402 million), following Deutsche Telekom’s acquisition of a strategic stake in the Greek incumbent. The German giant also controls T-Mobile Macedonia and competition authorities recently ruled that as Cosmofon and T-Mobile collectively control more than 90% of the domestic mobile market, DT must sell one of them to avoid a monopoly situation arising. The search for a new owner will begin after the Macedonian Competition Agency releases a document stating that the agreement between DT and OTE creates a monopoly on the mobile telephony market. It is understood Cosmofon will be divested in February 2009 along with its equipment and national network.

North Macedonia, ONE (incl. on.net and Cosmofon), Turk Telekom