UTEL Privatization Bidders Asked to Help Formulate Terms

The State Property Fund has invited strategic investors interested in the privatization of a 67.79% stake in Ukrtelecom (UTEL: HOLD) to participate in the development of auction conditions, according to Interfax. On February 6, the Cabinet of Ministers approved a plan to privatize Ukrtelecom; a 25%+1 stake is to remain under state control. The actual tender shall take place 45 days after the publication of privatization terms, which is expected in about a month’s time. Russian mobile operator MTS expressed an interest in participating earlier this week. We continue to believe that a realistic timetable for the tender is 2Q08.