Corporate Briefs

Telekom Austria a serious bidder for Slovak Telecom
SCP Ružomberok sales hit 8 billion Sk in 1999

Telekom Austria a serious bidder for Slovak Telecom

Telekom Austria is a promising investor in the privatization battle for Slovenské Telekomunikácie (ST), Slovakia's state telecom monopoly, said the chairman of the firm's board of directors, Rudolf Fischer, on January 12.
Fischer explained that Telekom Austria's interest in ST flowed from its expansion goals in central and eastern Europe, as well as the natural advantages of the territorial proximity and long-term contacts with Bratislava.
Although he would not discuss the concrete price ST migh fetch, Fischer said that the 17 billion crowns that Telecom Minister Jozef Macejko mentioned last week was not unreal.
Several companies have already submitted bids in the pre-qualification round for the ST privatization tender. Ian Logan of the London-based branch of Deutsche Bank, who is the advisor for the ST privatization, said there was no definite deadline for submitting applications during this phase of the tender. However, in February 2000, the process should be completed and all the application forms should have arrived.
Based on an advertisement that the Slovak Telecom Ministry published in the international press on November 25, the registration of bidders is open for operators that operate a telecom network with more than 2 million lines and with revenues of at least $400 per one connection in 1998.
The Telecom Ministry's idea is that a strategic partner should enter ST through an increase in the registered capital and acquire a 51% stake in the company. The ministry plans to retain control of 34%, while the remaining stake will be in the hands of the national privatization agency, the FNM. The FNM will in turn use its stake for the redemption of bonds it issued to citizens as a substitute for the coupon privatization canceled by the previous government of Vladimír Mečiar.


SCP Ružomberok sales hit 8 billion Sk in 1999

Pulp and paper mill SCP Ružomberok had a tough year in 1999, as the company's operations were hurt by the general economic slowdown and the drop in the prices of pulp and paper products during the first three quarters of the year.
Nevertheless, SCP made 2.3 billion Slovak crowns in capital investments last year to boost paper production. The most important investment project was the reconstruction of the paper mill, which lasted from February to July and cost 1.75 billion crowns.
The reconstruction helped SCP to weather the storm and actually increase production and sales from 7.55 billion crowns in 1998 to 8 billion crowns in 1999. Profits are expected to be lower in 1999 than the 172 million netted in 1998 because of the construction of the mill.


Compiled by Keith Miller
from Sita and Rueters

Top stories

News digest: Volvo will build its third plant in Slovakia, which will produce e-cars

Levoča hosts the biggest pilgrimage in Slovakia, transactions in Slovak shops are rounded and two hospitals - one in Bratislava and the second in Martin, will be constructed from the Recovery Plan.


14 h
Slovak PM Eduard Heger and Javier Varela chief operating officer at Volvo Cars, left, after signing the agreement on construction of the plant in the industrial park Valaliky near Košice.

Volvo is coming, Slovakia to end up with fifth carmaker

The plant will produce electric cars near Košice.


19 h

New cure for potentially deadly canine disease comes from Slovakia

Cure stops the disease from recurring, scientists say.


29. jun
Jeremy Hill and Annel Bautista explore the topic of reinvention through the story of one Mexican entrepreneur in the latest episode of the Na Slovensku Aj Po Anglicky podcast.

Viva Eslovaquia!

Chef Brian Navarro brings the heat to Bratislava with his new Mexican restaurant, Mezcalli.


28. jun
SkryťClose ad