Swisscom has announced that it has up to CHF10bn (EUR6.1bn) that it is prepared to invest on acquisitions. One condition, however, it is just interested in companies that are performing.
Swisscom recently bought Cesky Telecom. On privatisation this company was bought by the Danish TDC and Deutsche Bank. Once this acquisition was complete the Swiss announced that they were still out shopping. It is said that they have teamed up with certain British investment funds and are likely to consider investing in Wrocław based Dialog. One of the most interesting products on the European market must be Polska Telefonia Cyfrowa (PTC), operator of the Era GSM brand. It is the largest operator in central Europe and a 51 percent stake in it is on the market. Shareholders Vivendi and Elektrim both need to raise cash quickly. The French have a 51 percent stake in Elektrim Telekomunikacja (ET) whilst trouble hit Elektrim has the remainder. Surprisingly both seem to have problems finding a buyer. It is rumoured that negotiations with Citibank and Eastbridge have failed. Negotiations between BRE Bank and Eastbridge have also produced no results. Bond holders also put in a EUR350m offer. It is unfortunate that Elektrim has found itself in problems at this moment, precisely when it cannot sell an asset that only a couple of years ago would have created a great deal of interest. The problem today is that telecos have debts and must look to cut costs. Swisscom is an exception. It is also possible that Deutsche Telekom, the most heavily indebted teleco in Europe and which owns 49 percent of PTC, could also seek money to keep its creditors happy. Another target for the Swiss could even be Telekomunikacja Polska (TP SA). Pia Rogers of Swisscom says that his company is not just interested in mobile operators. France Telecom (FT), the main investor in TPSA, has been considering selling some of its assets for some time. No decision has been made as considers TPSA. The French have an option to take an extra 2.5 percent in TPSA but they have shown little interest. An offer was expected in June but three months later and still nothing has been received.