A panel within Serbia’s finance ministry rejected Telekom Austria’s E1.1bn bid for a 51% stake in Telekom Srbija for failing to fulfil financial conditions, Reuters reports quoting the finance ministry.
The revised bid that the Austrian company submitted…
A panel within Serbia’s finance ministry rejected Telekom Austria’s E1.1bn bid for a 51% stake in Telekom Srbija for failing to fulfil financial conditions, Reuters reports quoting the finance ministry.
The revised bid that the Austrian company submitted yesterday still fell short of the minimum price of E1.4bn set by the authorities.
On March 21, Telekom Austria was the sole bidder for the stake, but only made a conditional bid of E800-900m plus included a commitment to capital expenditures of E450m over a three-year period.
The government gave the Austrian company until May 4 to improve its bid.
Serbia owns 80% of the telecoms incumbent, while Deutsche Telekom-owned OTE controls the rest.
The government is advised by Citigroup, while Telekom Austria is advised by Bank of America Merrill Lynch and Raiffeisen Investment.
The authorities did not respond to a request for comment before press time.
