Carlos Slim gives up on idea of buying Telekom - report

The new "game of poker" around Telekom Srbija will be played without Telekom Austria and its majority owner, Carlos Slim's America Movil.

Izvor: Tanjug

Tuesday, 18.08.2015.

11:25

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Carlos Slim (Beta/AP, file)

Carlos Slim gives up on idea of buying Telekom - report

Telekom Austria and America Movil - that uses the former as its platform to expand in Europe, above all to the east - are not among the eight companies that have submitted their bids to buy a majority stake in Telekom Srbija.

The Vienna daily noted that Serbia said it would not sell 58.11 percent of Telekom for under 1.1 billion, "raising the bar for those interested very high." Among them are Deutsche Telekom, Slovenia's Telekom Slovenije, Russia's MTS, and a number of funds.

An unnamed source with knowledge in the matter said that "due to the low profitability and necessary restructuring, expectations from the price are too high."

Serbia, the paper argues, is not favorable ground for Telekom Austria, which in 2011 attempted to buy the Serbian company offering only EUR 1.1 billion for a 51 percent share, while the government asked for 1.4 billion.

Two years later, the Austrians unsuccessfully attempted to take over cable and internet operator SBB.

But Telekom Austria owns VIP, the third mobile operator in the Serbian market, and would have to "give it up" if it were to buy a stake in Telekom Srbija.

Speaking on Friday, Serbian Trade and Telecommunications Minister Rasim Ljajic said that the government's "goal is to open the binding offers for Telekom in the first half of November."

He added that "the goal is for the (privatization) contract, if all goes well, to be signed by the end of the year." However, Ljajic added that "Telekom will not be sold at any cost."

Speaking for TV Pink, he said he "could not yet speak about the offers, the value, and those who submitted the offers," adding there was "the possibility" that more interested parties would take part.

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