Telekom Srbija to remain in state hands

14 Dec 2015

The Serbian government has rejected all six bids for its 58.11% stake in fixed line incumbent Telekom Srbija after the offers fell short of the state’s valuation of the operator. Local news agency Tanjug cites Prime Minister Aleksander Vucic as saying that the government’s decision was unanimous, despite at least one of the offers coming close to the amount that the government saw as acceptable. Mr Vucic had previously warned that the government would not sell its stake in the telco unless it got the right price for the shares, valuing the holding at around EUR1.4 billion (USD1.54 billion). Commenting on the bids, the PM noted that a US-based investment firm had submitted the highest offer; Mobile World Live reported that Apollo Global Management was the highest bidder with an offer of EUR1.2 billion, but did not cite its source.

With the operator remaining in state hands, Telekom Srbija will be restructured over the coming months, Mr Vucic added, although the precise nature of the reorganisation has not been disclosed. It was confirmed, however, that the operator would gradually downsize its workforce over the next four years. The move was welcomed by the telco’s union, which noted that cutbacks would have been worse under a new owner, adding that many employees had already taken voluntary early retirement.

Serbia,Telekom Srbija (MTS),

Subscribe

Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.

Subscribe to CommsUpdate

Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share