Europe’s largest mobile phone operator, has shunned its traditional advisers on mergers and acquisitions

Europe’s largest mobile phone operator, has shunned its traditional advisers on mergers and acquisitions with the appointment of Citigroup to weigh a possible $2 billion (£1.1 billion) bid for the Czech Republic’s Cesky Telecom. Citigroup’s engagement is a blow to UBS and Goldman Sachs, the investment banks that advised Vodafone on lucrative bids including the mobile group’s failed tilt at America’s AT&T Wireless earlier this year and its successful takeover of Germany’s Mannesmann in 2000. Vodafone said that it had appointed Citigroup and Ceska Sporitelna, a Czech bank, because of their stronger knowledge of the country, where the Government plans to sell its 51 per cent stake in Cesky Telecom. The Czech Government plans to open a tender in September for its stake in the former monopoly, which is one of the most profitable telecoms groups in Europe. Cesky comprises a fixed line business with about 3.6 million customers and the nation’s leading wireless group, Eurotel. Vodafone is unlikely to be interested in the fixed-line operations and is expected to investigate the possibility of buying only the wireless business.