SCM considers bid for Ukrtelecom

SCM is considering a bid for Ukrtelecom (UX: UTLM UK), the incumbent fixed-line operator, according to Ilya Arkhipov, SCM director of business development, cited in Interfax. The auction for the 92.7% state stake is scheduled for 28 December 2010. SCM’s telecom arm currently consists of a 45% stake in Astelit, Ukraine`s number three mobile telecom operator and 100% of Vega Telecom, the fourth largest broadband provider in the country. Yegor Samusenko: SCM and MTS are the two most actively discussed potential bidders for Ukrtelecom in the forthcoming privatization. While MTS earlier confirmed that it is considering a bid for Ukrtelecom, the recent announcement by Ilya Arkhipov is the first indication of interest from the SCM side. We view yesterday’s unexpected USD 80 mln interim dividend payment by SCM-owned DTEK as indication of cash accumulation for a forthcoming auction.