The Serbian government has asked Telekom Austria to increase its EUR950 million (USD1.34 billion) offer for a 51% stake in Telekom Srbija. Belgrade said yesterday that the bid was below its minimum price of EUR1.4 billion and called for a higher offer within 15 days. Telekom Austria CEO Hannes Ametsreiter said last week his company would not pay ‘any price’ for the acquisition, which will make it the dominant player in country. According to a statement made by Telekom Austria last week, it has offered EUR950 million in cash plus a promise of an additional EUR450 million in investment.
According to TeleGeography’s GlobalComms Database, Telekom Srbija is currently 80%-owned by the state with the remainder held by Greece’s OTE. If the sale goes ahead, the Greek company will completely dispose of its equity, while the state will reduce its participation to 49%.