Telefonica acquisition of Cesky Telecom draws mixed market reviews

The acquisition of Cesky Telecom by the Spanish telecoms giant Telefonica and its further ambitions in Europe have drawn mixed reviews from market analysts, the AFP agency wrote. The ratings agency Standard and Poor's said the price of 3.5 billion dollars agreed upon for Cesky Telecom was high in light of the latter's limited growth prospects and the absence of major cost advantages. On the other hand, an analyst at the Belgian-Dutch bank and insurance group Fortis described the purchase of Cesky Telecom as a positive step in a country "that is going to be one of the principal beneficiaries" of EU cohesion funding following its admission last May to the European Union. Telefonica head Cesar Alierta last November expressed a desire "to create the world's largest and best integrated company" in the telecommunications sector.