SPF Suggests Privatizing Ukrtelecom at Auction

The Deputy Head of the State Property Fund, Dmytro Parfenenko, declared “he will suggest” that the cabinet privatize Ukrtelecom (UTEL: HOLD) via open auction rather than selling its 37.86% stake on international stock exchanges as was planned before. Previous attempts to privatize Ukrtelecom via shares placements failed; the SPF has managed to sell only 0.07% of the company’s shares on the PFTS so far. Alexander Paraschiy: The SPF seems to be anticipating Tymoshenko’s intentions. Unlike last year, this SPF’s initiative is in line with the President’s position on the issue and is highly likely to be supported by Tymoshenko’s government. Should everything go smoothly, preparation to privatize at auction could become a long awaited catalyst for the stock in the anticipation of a strategic owner the company badly needs.