Telekom Srbija sale to be cancelled?

28 Mar 2011

Serbia could cancel the sale of a 51% stake in Telekom Srbija today, after a lone bid by Telekom Austria failed to meet the government’s EUR1.4 billion (USD2 billion) asking price. A government commission is expected to announce today in Belgrade whether or not it will accept the Austrian offer of EUR950 million in cash and EUR450 million in investment.

Prime Minister Cvetkovic, who is struggling to trim the budget deficit to live up to terms of the country’s international bailout loan, has previously said he will not accept less than EUR1.4 billion in cash. Telekom Austria was the only one of seven companies registered for the sale to place a bid; the other prospective bidders were Deutsche Telekom, France Telecom, America Movil, Orascom Telecom Holding (through Weather Investments), Vimpelcom and Turkcell.

Serbia, A1 Telekom Austria Group, Telekom Srbija (MTS)