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By Mark Holmes, [email protected]
LONDON - Tele Danmark could be on the verge of securing a majority stake in Czech telecom and broadcasting player Ceske Radiokomunikace.
At least this is the scenario thought most likely by the industry since the Czech government announced it was going ahead with the privatization of its telecom assets, despite the depressed state of the telecom markets. Because of these worsening economic conditions, the government probably will get less than $500 million for its 51 percent stake in Ceske Radiokomunikace, roughly half the price officials had hoped for.
If Tele Danmark does indeed bid on the carrier, it would gain the No. 2 Czech wireline player, and a minority stake in Radiomobil, the telco's cellular operator, as well as control of the broadcasting business and of Internet service provider Contactel, where it already holds a 50 percent stake.
Tele Danmark already holds a 20.8 percent stake in Ceske Radiokomunikace and is a firm favorite to assume majority control.
Stefan Herz, a telecom equity...