"Deutsche Telekom" interested in purchase of majority package of stocks of Serbian "Telekom" - however, no talks about sale of stocks in 2008

As it was confirmed on Tuesday (August 26, 2008), "Deutsche Telekom" expressed interest in takeover of majority package of stocks of Serbian "Telekom". However, the representatives of the Government of Serbia have no intention of negotiating about sale of stocks of the national teleoperator in 2008.

People in the Government of Serbia remind that the contract with the privatization adviser for preparation of the initial public offering of stocks of company "Telekom Srbije" will be signed by the end of this week. According to the public invitation that was announced in January 2008, seven large international investment banks are in the race and one of them will be selected to prepare the development strategy for "Telekom Srbije" by the end of the year.

The privatization adviser will make a thorough analysis of legal and financial situation in "Telekom Srbija" and it will then design and implement the strategy for realization of IPO of stocks that will be examined and adopted by the Government of Serbia. Once all this is finished, privatization of the national teleoperator can start.

Government of Serbia does not give up privatization through IPO, which implies sale of 15% of stocks on a stock exchange (in both Belgrade and London), as well as distribution of 15% of stocks among the citizens who gained the right on free stocks. According to current and prevailing position of the representatives of the Government of Serbia, the majority package of stocks of "Telekom Srbija" should remain the property of the state in the following period.

Telekom Srbija a.d. Beograd

Deutsche Telekom AG Bonn

Beogradska berza a.d. Beograd

Vlada Republike Srbije

PTT saobraćaja Srbija

OTE

Government of Serbia

IPO

Belgrade Stock Exchange

London Stock Exchange