SCM To Buy Ukrtelecom?

System Capital Management (SCM) announced that they were considering participating in Ukrtelecom’s (UTEL: Under Review) privatization tender. SCM has been rapidly constructing a telecom empire by consolidating small mobile and fixed line operators. Concorde Capital: UTEL’s CEO was the first to hint that SCM was interested in buy UTEL months ago by UTEL’s CEO (refer to our news from Nov. 29, 2005). SCM could buy UTEL, but it’s hard to say whether the Anti-Monopoly Committee would allow SCM to increase its share in the fixed line market from 11% to 82%. However, the situation was similar in 2004 when Procter and Gamble was allowed to accumulate 2/3 of Ukrainian’s washing powder market via an acquisition. Watch: We will be releasing a comprehensive report on UTEL early next week, contact your broker for details.