Deutsche Telekom has reportedly received a bid of €2 billion for Magyar Telekom.
However, quoting Világgazdaság, Portfolio.hu reports that it is not clear if the amount is for Deutsche Telekom’s 59.21% stake or one that values the entire Hungarian company at €2 billion.
Furthermore, the report quotes the Bloomberg Concorde analyst Gellért Gaál, who says the market rumours are based on a published article and it is unclear why Deutsche Telekom would want to sell its Hungarian interest.
Aside from Deutsche Telekom, Magyar Telekom is backed by Brandes Investment Partners, which has a stake of over 5% in the telco, and 33.63% is a float. If the bid was for only 59.21%, the prospective buyer would have to make a binding offer for the remaining 40.79% as it would exceed the 25% bidding limit for the fund transaction. This would put the value of Magyar Telekom at over €3 billion.
The rumours of a possible sale has result in a significant increase in the cost of Magyar Telekom shares in recent days.
