Tymoshenko Wants To Sell 50% Stake In Ukrtelecom

Prime Minister Tymoshenko considers said it would be reasonable to sell a controlling stake of Ukrtelecom (UTEL: HOLD) to a strategic investor, instead of a 42.8% stake, as was previously planned. According to Tymoshenko, if the 50 % block were sold, a 42.8% stake would remain in state hands, which would be sufficient to control UTEL and receive high dividend payments. Concorde Capital: Selling a controlling stake in UTEL at the privatization tender would increase the value of the privatized stake significantly, as potential investors would be made to pay a premium for control in this case. However, the loss of state control over a company as strategically important as UTEL could hardly be compensated by the increased revenues from privatization. Therefore, Tymoshenkos? initiative will be difficult to implement in Parliament, which is responsible for adopting the law on UTEL’s privatization.