Final Word from Monday, March 21, 2005
It's in Vodafone's competitive interest for the privatization of Český Telecom and Eurotel to be delayed and for the management of the two Czech companies to remain in place for as long as possible. As Euro notes today, Eurotel won't be able to hold its market position unless it gets a strong buyer. By announcing a high price for Oskar last week, Vodafone was putting pressure for the direct sale of Telecom to be abandoned. Patrick Zandl wrote in LN that, at the current bid prices, the buyer of Telecom/Eurotel would essentially be getting Telecom for free if Oskar's cost-per-customer value were applied to Eurotel. Vodafone's high price for Oskar could force bidders to raise the offers for Telecom. If the bids are still too low and the cabinet opts instead for a flotation or cancellation, Vodafone wins again, because Telecom's managers will stay in place for years to come. [Czech Republic Orange France Telecom Blackston CVC Providence Mobil TIW Lidové noviny]