Telekom Sr­bija.

Kathimerini English - - Business & Finance -

Telekom Aus­tria AG of­fered up to 1.1 bil­lion eu­ros ($1.6 bil­lion) for a ma­jor­ity stake in Ser­bian state tele­phone com­pany Telekom Sr­bija AD in a re­vised bid that falls short of the gov­ern­ment’s tar­get. The Aus­trian com­pany, the sole bid­der for the 51 per­cent stake, of­fered to pay 800 mil­lion eu­ros in cash up front and “de­ferred an­nual cash pay­ments over a pe­riod of nine years af­ter clos­ing” of the trans­ac­tion, ac­cord­ing to a state­ment yes­ter­day from Vi­enna. A Ser­bian com­mit­tee rec­om­mended the gov­ern­ment re­ject the bid. Ser­bian Prime Min­is­ter Mirko Cvetkovic has said he wants 1.4 bil­lion eu­ros for the stake, and ex­tended the dead­line twice to give Telekom Aus­tria more time to work on a bet­ter bid. The Aus­trian com­pany had orig­i­nally of­fered up to 950 mil­lion eu­ros in cash and 450 mil­lion eu­ros in in­vest­ment for the com­pany. “Sub­ject to fur­ther ne­go­ti­a­tions on the sub­mit­ted con­di­tions, this bid is ex­pected to re­sult in a max­i­mum net present value of the equity value of up to 1.1 bil­lion eu­ros,” Telekom Aus­tria said in its state­ment. (Bloomberg)

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