Group will pay 55.3 billion Kc for 51 percent of telephone company

The saga of Cesky Telecom's privatization may finally have come to an end. Finance Minister Bohuslav Sobotka ended years of government deliberation and indecision August 7 when he told a press conference that the Cabinet has decided to sell the state's 51 percent stake in the dominant fixed-line carrier. Deutsche Bank and TDC, a Danish telecom firm, have agreed to pay 55.3 billion Kc ($1.8 billion) beating out a lower bid from Swisscom, CVC Capital Partners and Spectrum Equity Investors. Deutsche Bank will take ownership of the shares, while TDC will be responsible for advising Cesky Telecom management, and would receive shares based on performance. Analysts said the sale of Cesky Telecom, which operates nearly 4 million telephone lines across the country, would be good for competition in the telecom market, and ended uncertainty over the company's future.