Q:
A:
Competitiveness of Telekom requires strategic partner, fresh investments
Belgrade,
22 February 2011
Prime Minister Mirko Cvetkovic said that the government set a high price for selling a majority stake in the company Telekom Srbija and stressed that the tender, if this price is not achieved, will be declared unsuccessful.
Author:
www.emportal.rs
Cvetkovic said in an interview for the magazine Ekonomist that the Serbian government does not want to sell the majority stake in Telekom at any cost, with the reminder that the starting price for 51% stake in the company is €1.4 billion.
The deadline to submit binding offers is 21 March, said the Prime Minister and reiterated that the funds from the sale of Telekom cannot be used for public consumption.
From this point of view, it is therefore completely irrelevant whether there are funds in the budget, because if there are not, the state will take loans to cover the lack of funds, he explained.
Cvetkovic stressed that at the moment, the budget does not have any problems with the inflow, noting that the state even has reserves of around €500 million in foreign currency.
The sale of Telekom Srbija is important, but without a strategic partner and new investments, the company, when exposed to strong competition in landline and mobile telephony sectors, may collapse as a system within four or five years, he observed.
A state company cannot survive strong competition with powerful private companies, which is why Telekom Srbija should be sold, and not only for the state to gain some funds, but also because the new owner will be forced to make investments, Cvetkovic concluded.
The deadline to submit binding offers is 21 March, said the Prime Minister and reiterated that the funds from the sale of Telekom cannot be used for public consumption.
From this point of view, it is therefore completely irrelevant whether there are funds in the budget, because if there are not, the state will take loans to cover the lack of funds, he explained.
Cvetkovic stressed that at the moment, the budget does not have any problems with the inflow, noting that the state even has reserves of around €500 million in foreign currency.
The sale of Telekom Srbija is important, but without a strategic partner and new investments, the company, when exposed to strong competition in landline and mobile telephony sectors, may collapse as a system within four or five years, he observed.
A state company cannot survive strong competition with powerful private companies, which is why Telekom Srbija should be sold, and not only for the state to gain some funds, but also because the new owner will be forced to make investments, Cvetkovic concluded.
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