Bh Telecom - Urgent Selling at Any Price

Last week in the organization 'Sarajevo Stockdate, invested about two billion euro in new
Exchange' was held Third International Conferenceknowledge, technologies and services, and that is
'The privatization of telecommunication operatorsthanks largely by belonging to the
- the turning point in the development of capitaltelecommunication group, 'Deutsche Telekom', and
markets', which was attended by about 300his company has the opportunity to offer
participants from all over the region. Since thatCroatian users a number of advanced services.
privatization of telecoms in the Federation ofChairman of the Board of Telekom Austria 'Boris
Bosnia and Herzegovina must be completed in theNemsic said that the interest of his company's
next 15 months, and in that period werePrivatization' BH Telecom 'priority and expressed
committed BH-government signing the Stabilizationconcern over the fact that the value of' BH
and Association Agreement with the EuropeanTelecom 'constantly decreasing due to the drop in
Union, the announcement was discountedits shares on the stock exchange. (Of course,
gathered a wide circle of interested, potentialnone of the present was not asked why the
customers, from government representatives,'Telekom Austria "is interested in buying
consultants and interested financial investors. Butcompanies whose value falls?). The prices that his
at the very beginning, proclaimed initial idea fromcompany intends to offer for 'BH Telekom'
the Sarajevo Stock Exchange was dropped, theNemsic declined to speak, but because he has
one that this conference will set "lights up theannounced better work conditions, more favorable
privatization of telecoms operators with respectconditions for users, development, investment and
to the state as the seller, from the angle oflower prices. Both Mudrinic and Nemsic have urged
potential investors, based on the experiences offor the immediate privatization, which is in the
consultants and advisers who participated in theinterest of the Federation and its citizens.
privatization transactions." Seeing that none of theAccording to the predictions that were heard,
participants has not at the meeting loudlycapital privatization of state company BH Telekom
pronounced a single argument against privatizationwill most likely begin in February 2009. According
in a hurry, without exaggeration can be said thatto this scenario, the Federation Parliament should
two days of Sarajevo international conferencein the next few days adopt the document, policy
were dedicated to open lobbying for theof privatization, after which the government
immediate privatization by any price.would be launched election process with the
According to the information that they could beconsultant to prepare tender documentation and
heard at the conference, government of Bosniaafter these steps would be followed relatively
and Herzegovina in the first phase plans to sell 51quickly publish public tenders.
percent of capital 'BH Telecom' to a strategicAnd while it is perfectly clear that for immediate
partner, most likely to Telekom Austria, and insale at any price have 'rooted' companies
the next stages ten to 15 percent offer oninterested in buying, because, in terms of global
domestic and foreign stock markets, while in casecrisis when the state donate money to banks to
'HT Eroenta' 25 percent ownership to sell acontinue to give loans, especially valuable are
strategic partner - 'the Croatian Telekom,' whichcompanies without debts and with surplus cash,
has a right of pre-emption.so it is confusing this government's agitating for
The biggest 'stars' the Sarajevo conference wererealization of this goal. Namely, 'BH Telecom' will
directors and probable future owner ofalways be able to sell, and now, and for half a
BH-Telecommunications, Chairman of the Board'year, and for 15 months, and it is a well known
T-Croatian Telecom Ivo Mudrinic and Chairman offact that company's value will increase, due to
the Board of Telekom Austria' Boris Nemsic.global crisis, because in these conditions cash is
Mudrinic spoke of the positive examples from thealways a favorite. So, why sell something that will
process of privatization of telecommunications inbe more valuable in following months?
Croatia, pointed out that in T-HT-in since 1999. to