Deutsche Telekom,Telekom Austria buy tender documents for Serbian peer.

By bne IntelliNews November 9, 2010
Deutsche Telekom and Telekom Austria have purchased documents for participation in the privatisation tender of state telecommunications company Telekom Srbija, B92 reported quoting Press daily. Egypt's Orascom is also expected to purchase tender papers soon. However, it is still uncertain whether the government would sell 31% or 51% of the company, which depends on whether Greece's OTE would sell its 20% stake in the telecom. Serbia owns 80% of the telecoms company, while OTE controls the remainder. The deadline for the purchase of tender papers expires on November 23. The government has not yet set the minimum price. If it determines a minimum price after the expiration of the tender deadline, it might launch direct talks with potential buyers. However, the steps in the sale of Telekom could be changed if the government decides not to set a minimum price. According to privatisation agency official Dusan Belanovic, this tender could serve as basis for the government to determine the indicative price. Since Telekom Srbija was evaluated at EUR 2.4bn, if bidders offer prices higher than half of this sum, the government could start direct talks with them. Another option is to call a new tender, in which the starting price would be the highest price offered in the current bidding, Belanovic added.

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