PM: Government decides against selling Telekom
The Serbian government has decided not to sell Telekom Srbija, Prime Minister Aleksandar Vucic told an extraordinary news conference called on Friday afternoon.
Friday, 11.12.2015.
12:39
PM: Government decides against selling Telekom
"Although we received a good offer, we realized it was not good enough for us to go into the privatization of Telekom Srbija," Vucic told reporters, and explained that six binding buds had arrived, "where that from Telekom Austria singled itself out and was better than the one from 2011."Telekom Austria in 2011 offered EUR 1.1 billion for 51 percent of shares, when the government asked for a minimum of 1.4 billion.
The prime minister said today his cabinet made the decision today unanimously, and that it was suggested by a commission set up for the privatization of the company.
Vucic remarked that the government "expected the price that was also agreed on with union representatives."
The government on Friday morning postponed its decision on the privatization of Telekom Srbija for the afternoon, Vucic said earlier in the day, adding he was not ruling out the possibility that a final decision, which he said was one very difficult to make, might be delayed until Monday.
The government offered a 58-percent stake in the state-owned telecommunications company for sale, and received six bids that were opened in late November, but not disclosed to the public.
Speaking earlier on Friday, the prime minister said that the best offer came from "Americans."
"If they gave 100, 200 million more, there would be no dilemma," he remarked.
Vucic also said that the investor "counts on having problems once they take over Telekom because of what has been agreed with the employees and the unions, as well as other problems they would face after taking over the company."
This, said Vucic, "partially contributed to the lowering of the price."
The state currently owns 58.11 percent of Telekom, while the company owns 20 percent. Private citizens and current and former employees control stakes of 14.95 and 6.94 percent, respectively.
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