Sobotka recommends selling Telecom majority stake on capital markets

Finance Minister Bohuslav Sobotka has recommended the government sell the 51.1 majority stake it holds in the country's dominant fixed-line operator Cesky Telecom on the capital markets, rather than holding a new tender to choose a single buyer. The government is to decide the issue next Tuesday. Mr Sobotka outlined his stance in a document sent to the cabinet describing the political and economic transparency - as well as efficiency - of selling on the capitals markets, an option which does not need approval by the European Commission. Opponents of the plan, however, say it is far from certain investors will be interested in buying up such a large amount of Telecom stocks: excessive availability could consequently drive share prices down.