Serbia reportedly to abandon sale of telecom.

By bne IntelliNews March 28, 2011
Serbia will not sell the majority stake in telecoms operator Telekom Srbija this year, Novosti daily reported citing government sources. The government's working group in charge of selling Telekom Srbija is expected to come up with an official decision on the sale today, but cabinet members are in favor of cancelling the tender, Novosti's sources claimed. The sources noted that the offer of Telekom Austria is not valid, since the Austrians failed to offer the minimum price that the government had set for the stake. According to Novosti, Greek OTE is also against selling the majority stake in the Serbian telecom for less than EUR 1bn. However, OTE might decide to sell its 20% stake in Telekom Srbija independently, Novosti wrote. According to the current legislation and OTE's agreement with the state, the Greek company is obliged to offer its stake to the Serbian government first. As recalled, Telekom Austria was the only bidder at the tender for 51% in Telekom Srbija. Telekom Austria offered EUR 800-950mn for the stake and pledged to invest another EUR 450mn in the next three years. The Serbian government had set EUR 1.4bn as the minimum price for the stake.

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