Telekom Austria has decided not to go ahead with a bid for Bulgarian telco Vivacom.
Speaking to TelecomFinance, a spokesperson for Telekom Austria confirmed its board members have agreed not to submit a binding bid for the former state-owned…
Telekom Austria has decided not to go ahead with a bid for Bulgarian telco Vivacom.
Speaking to TelecomFinance, a spokesperson for Telekom Austria confirmed its board members have agreed not to submit a binding bid for the former state-owned monopoly, previously known as Bulgarian Telecommunications Company (BTC).
Austrian newspaper Die Presse reported in January that while part of the Telekom Austria board favoured the acquisition, CFO Hans Tschuden had reservations, expressing concerns the company’s problems with its Belarus business could repeat themselves in Bulgaria. The Belarus business has had a negative impact on Telekom Austria’s overall results because of exchange rate issues.
The Telekom Austria spokesperson said the company has not carried out due diligence on Vivacom.
According to Die Presse, Telekom Austria had considered breaking up Vivacom by, for example, selling off its mobile business to avoid difficulties with regulators.
Die Press and Bulgarian news media have named several other potential buyers for Vivacom, the nation’s dominant fixed line provider and third largest mobile operator. Turkcell, Bulgaria’s Corporate Commercial Bank board chairman Tzvetan Vassilev, and Icelandic businessman Thor Bjorgolfsson have all been identified as potential suitors. Turkcell confirmed in a statement it is considering Vivacom as a potential opportunity for expanding its business in the area.
According to a Bulgarian news agency citing local newspaper, Kapital, the deadline for submitting bids has been extended ten days to 27 February at the request of one of the potential bidders.
Vivacom declined to comment.
