Tuesday, August 12, 2008

Romania plans to float Romtelecom stake in 2009

BUCHAREST, Aug 12 (Reuters) - Romania plans to float next year a minority stake in leading landline telephone operator Romtelecom, majority owned by Greece's OTE (OTEr.AT: Quote, Profile, Research, Stock Buzz), the government said on Tuesday.

The float was scheduled for 2006 but has been repeatedly delayed after recent selloffs had come under the spotlight on suspicion of commercial espionage and due to unfavourable market conditions.

Telecoms Minister Karoly Borbely said earlier this year the float of at least 10 percent in Romtelecom was due by the end of 2008.

"The government's intention to privatise Romtelecom does exist. We did not have a proper climate for such an initiative in the context of a bad financial situation worldwide," Borbely said in a statement.

He said signing of a consultancy contract to advise on the sale will be done within one and half month, to allow for the listing next year.

The government holds a 46 percent stake in the company. (Reporting by Radu Marinas; Editing by David Holmes)

No comments: