ST agrees to buy remaining EuroTel shares
Business Journal Slovakia | 12.11.2004
Fixed-line operator Slovak Telecom (ST) is to increase its stake in EuroTel Bratislava, one of Slovakia's two mobile operators, from 51 percent to 100 percent, after ST agreed to buy the remaining 49 percent from Atlantic West B.V., a consortium of Verizon Communications and AT&T Wireless. EuroTel has around 44 percent of a market that it shares with Orange Slovakia. EuroTel chairman Michael Guenther said: "The purchase by ST of the remaining 49 percent in EuroTel is a basic pre-condition for expanding the successful co-operation between EuroTel and T-Mobile International (a mobile subsidiary of ST's owner Deutsche Telekom)."
Other telecom firms have no problem in principle with ST buy
The Association of Telecommunication Operators (ATO) has no reservations against Slovak Telecom (ST), the fixed-line operator, gaining a 100-percent stake in EuroTel if effective competition can be guaranteed. ATO chairman Vladimir Ondrovic said that ATO would respect a concentration of ST and EuroTel if seven conditions are fulfilled. One of the conditions is to keep the legal separateness of ST and EuroTel, including their administrative and accounting departments. ATO also requires a guarantee of some transparent relations, which will not discriminate towards other competitors, and a guarantee that the market will not be threatened by the existence of possible common products of ST and Eurotel, which wouldn't be offered to other parties, and which would be subject to the same conditions.
ST to lay off 60% of employees by 2006
Slovak Telecom (ST) is going through a restructuring process that will see more than 4,000 people lose their jobs in the next two years, according to company spokesman Radoslav Bielka. ST's workforce dropped from almost 13,000 employees in 2000 to 6,727 at the end of last year. By the end of 2006 the workforce should be down by a further 60 percent to only 2,700 employees.