EUR 380mn for 20 percent of Telekom shares

Danilo I'm not sure but I think that this is a rare wise move from the government. I suspect that OTE, like other Greek companies is likely cash strapped looking for liquidity and like other companies looking to sell assets.

Once Telekom is sold on we will be able to calculate exactly how wise the OTE selling price is, but it depends when Telekom is sold on.

On the other hand of course one can question in this time of austerity how smart it is to use the tax payers money in this way, whilst public expenditure is being cut back.

On balance though this move looks good for Serbia in the medium term, something of a miracle considering that governments in Serbia usually only think of raising money by selling things off in order to spend it, effectively bribing the people to vote for them.

This is the exact same valuation (1.9billion) that was given to the company by Austria telekom with their 950million offer for 51%

950X2 = 380x5

It's good that Telekom turned down the deal from Austria Telekom, and they purchased these shares at the right price. But, it does show that Austria Telekom did give the right price back in March.

I think you're right, bganon, except I also think they probably could have squeezed them a little more, considering the good possibility they're desperate.

Mind you, there's probably other considerations other than this one deal, so it's probably just perfect that they used the (too-low) valuation that Austria gave Telekom and got a good deal.

On balance though this move looks good for Serbia in the medium term, something of a miracle considering that governments in Serbia usually only think of raising money by selling things off in order to spend it, effectively bribing the people to vote for them.
(bganon, 17 December 2011 18:18) bganon what do you think of all the thievery of this and past Serbian governments http://english.blic.rs/Economy/8032/Croatian-companies-shall-sue-Serbia-if-it-sells-their-property http://www.nacional.hr/en/clanak/50512/inas-lawsuit-threatens-top-serbian-ranks http://www.b92.net/eng/news/politics-article.php?yyyy=2011&mm=04&dd=27&nav_id=74019.

Lenard I think its got nothing to do with the purchase of Telekom shares.

Tell you what though, you can talk about Serbian thievery and I will concern myself with economic growth.

Once we are all on the same page in that regard (regional maximisation of economic growth) we can tackle any controversial issues. That is once the emotionally immature (and the sensationalist, nationalist media) have let the subject go, so the rational adults can agree normally.

Oh and that goes for the lawsuits between Serbia and Croatia as well, which will be dropped, despite the cries of those desperately clinging onto the 90's. Personally I will get a lot of satisfaction once this chapter is closed, just as much satisfaction as those who enjoy the hatred, but in the opposite way.

Danilo you are probably right. A negotiation between two businesses would have seen an even lower price. But I suppose that when it comes to business one can't expect governments with incapable leaders to get the best price. On the other hand maybe the Serbian government calcuated that driving a harder bargain would harm relations with Greece. The Greeks are very, very angry at the moment.

On balance though this move looks good for Serbia in the medium term, something of a miracle considering that governments in Serbia usually only think of raising money by selling things off in order to spend it, effectively bribing the people to vote for them.
(bganon, 17 December 2011 18:18) bganon what do you think of all the thievery of this and past Serbian governments http://english.blic.rs/Economy/8032/Croatian-companies-shall-sue-Serbia-if-it-sells-their-property http://www.nacional.hr/en/clanak/50512/inas-lawsuit-threatens-top-serbian-ranks http://www.b92.net/eng/news/politics-article.php?yyyy=2011&mm=04&dd=27&nav_id=74019.

This is the exact same valuation (1.9billion) that was given to the company by Austria telekom with their 950million offer for 51%

950X2 = 380x5

It's good that Telekom turned down the deal from Austria Telekom, and they purchased these shares at the right price. But, it does show that Austria Telekom did give the right price back in March.

Danilo I'm not sure but I think that this is a rare wise move from the government. I suspect that OTE, like other Greek companies is likely cash strapped looking for liquidity and like other companies looking to sell assets.

Once Telekom is sold on we will be able to calculate exactly how wise the OTE selling price is, but it depends when Telekom is sold on.

On the other hand of course one can question in this time of austerity how smart it is to use the tax payers money in this way, whilst public expenditure is being cut back.

On balance though this move looks good for Serbia in the medium term, something of a miracle considering that governments in Serbia usually only think of raising money by selling things off in order to spend it, effectively bribing the people to vote for them.

I think you're right, bganon, except I also think they probably could have squeezed them a little more, considering the good possibility they're desperate.

Mind you, there's probably other considerations other than this one deal, so it's probably just perfect that they used the (too-low) valuation that Austria gave Telekom and got a good deal.

Lenard I think its got nothing to do with the purchase of Telekom shares.

Tell you what though, you can talk about Serbian thievery and I will concern myself with economic growth.

Once we are all on the same page in that regard (regional maximisation of economic growth) we can tackle any controversial issues. That is once the emotionally immature (and the sensationalist, nationalist media) have let the subject go, so the rational adults can agree normally.

Oh and that goes for the lawsuits between Serbia and Croatia as well, which will be dropped, despite the cries of those desperately clinging onto the 90's. Personally I will get a lot of satisfaction once this chapter is closed, just as much satisfaction as those who enjoy the hatred, but in the opposite way.

Danilo you are probably right. A negotiation between two businesses would have seen an even lower price. But I suppose that when it comes to business one can't expect governments with incapable leaders to get the best price. On the other hand maybe the Serbian government calcuated that driving a harder bargain would harm relations with Greece. The Greeks are very, very angry at the moment.