Cabinet Approves Ukrtelecom Privatization Plan

According to Deputy Head of the State Property Fund Andriy Parfenenko, Ukraine’s Cabinet of Ministers approved a privatization plan for Ukrtelecom (UTEL: HOLD): 67.79% of shares will be sold at auction as one block, while 25%+1 share will remain in state hands. Two steps are needed to pave the way for privatization: spin off departments responsible for confidential government communication services (not subject to privatization); and estimate the starting auction value of the company. Alexander Paraschiy: According to Parfenenko, the privatization tender can take place no earlier than one month. We believe that a realistic timetable for the privatization tender is 2Q08.