Bh Telecom - Urgent Selling at Any Price

Last week in the organization 'Sarajevo Stock Exchange' was held Third International
Conference 'The privatization of telecommunication operators - the turning point in
the development of capital markets', which was attended by about 300 participants
from all over the region. Since that privatization of telecoms in the Federation of
Bosnia and Herzegovina must be completed in the next 15 months, and in that period
were committed BH-government signing the Stabilization and Association Agreement
with the European Union, the announcement was discounted gathered a wide circle
of interested, potential customers, from government representatives, consultants and
interested financial investors. But at the very beginning, proclaimed initial idea from
the Sarajevo Stock Exchange was dropped, the one that this conference will set
"lights up the privatization of telecoms operators with respect to the state as the
seller, from the angle of potential investors, based on the experiences of consultants
and advisers who participated in the privatization transactions." Seeing that none of
the participants has not at the meeting loudly pronounced a single argument against
privatization in a hurry, without exaggeration can be said that two days of Sarajevo
international conference were dedicated to open lobbying for the immediate
privatization by any price.

According to the information that they could be heard at the conference, government
of Bosnia and Herzegovina in the first phase plans to sell 51 percent of capital 'BH
Telecom' to a strategic partner, most likely to Telekom Austria, and in the next stages
ten to 15 percent offer on domestic and foreign stock markets, while in case 'HT
Eroenta' 25 percent ownership to sell a strategic partner - 'the Croatian Telekom,'
which has a right of pre-emption.

The biggest 'stars' the Sarajevo conference were directors and probable future owner
of BH-Telecommunications, Chairman of the Board' T-Croatian Telecom Ivo Mudrinic
and Chairman of the Board of Telekom Austria' Boris Nemsic. Mudrinic spoke of the
positive examples from the process of privatization of telecommunications in Croatia,
pointed out that in T-HT-in since 1999. to date, invested about two billion euro in new
knowledge, technologies and services, and that is thanks largely by belonging to the
telecommunication group, 'Deutsche Telekom', and his company has the opportunity
to offer Croatian users a number of advanced services. Chairman of the Board of
Telekom Austria 'Boris Nemsic said that the interest of his company's Privatization'
BH Telecom 'priority and expressed concern over the fact that the value of' BH
Telecom 'constantly decreasing due to the drop in its shares on the stock exchange.
(Of course, none of the present was not asked why the 'Telekom Austria "is interested
in buying companies whose value falls?). The prices that his company intends to
offer for 'BH Telekom' Nemsic declined to speak, but because he has announced
better work conditions, more favorable conditions for users, development, investment
and lower prices. Both Mudrinic and Nemsic have urged for the immediate
privatization, which is in the interest of the Federation and its citizens.

According to the predictions that were heard, capital privatization of state company
BH Telekom will most likely begin in February 2009. According to this scenario, the
Federation Parliament should in the next few days adopt the document, policy of
privatization, after which the government would be launched election process with
the consultant to prepare tender documentation and after these steps would be
followed relatively quickly publish public tenders.

And while it is perfectly clear that for immediate sale at any price have 'rooted'
companies interested in buying, because, in terms of global crisis when the state
donate money to banks to continue to give loans, especially valuable are companies
without debts and with surplus cash, so it is confusing this government's agitating for
realization of this goal. Namely, 'BH Telecom' will always be able to sell, and now,
and for half a year, and for 15 months, and it is a well known fact that company's
value will increase, due to global crisis, because in these conditions cash is always a
favorite. So, why sell something that will be more valuable in following months?