OTE may sell Telekom Srbija stake

25 Oct 2010

Serbian online news portal EMportal is reporting that Greek telco OTE is mulling plans to sell its minority stake in Telekom Srbija. The story says that OTE has not disclosed a time frame for its plans to sell the 20% stake, which it bought from the Serbian government in 1997 for about USD418 million.

Last week the Serbian government, owner of the remaining 80% of the company, launched a tender for the sale of a 51% stake in Telekom Srbija, without setting a minimum price, with interested investors invited to file bids by 26 November. A decision by OTE to ditch its stake may mean that Belgrade will opt to reduce the number of shares on offer to 31%.

The Serbian press is speculating that Deutsche Telekom is the most likely purchaser of Telekom Srbija, with reports circulating that it has offered the Serbian government EUR1.2 billion for a 51% stake, somewhat short of the EUR1.4 billion pricetag Belgrade is believed to have put on the asset. Deutsche Telekom has a 30% stake in OTE.

Serbia, Cosmote, Telekom Srbija (MTS)