Telekom Austria Outbid Once Again

Dec. 7.06 | About: Telekom Austria (TKAGY)

Telekom Austria (NYSE: TKA) has lost out on the auction of Telekom Srpske in Bosnia and Herzegovina. This is third auction loss out of the three for Telekom Austria in the 2006 auctions that they participated in.

The winner of the auction was the Serbian-state owned operator Telekom Srbija who bid €646m against €467m from Telekom Austria. It seems strange to me to privatize an operator only for it to be bought by the Serbian government, but there we go.

Telekom Austria has not given up on Bosnia and said in the press release that they will back when opportunities arise. They also seem to imply in the press release that Telekom Srbija might have problems completing the transaction.