Romania's communications minister says RCS &RDS filed offer for stake in Romtelecom

Romanian telecom company RCS &RDS has filed an offer to buy the Romanian state's shares in telecom operator Romtelecom, the biggest landline operator in Romania, according to Communications Minister Valerian Vreme. “If we won't reach an agreement with the majority shareholder in Romtelecom, the Greek group OTE, I would prefer to have Romtelecom listed. But there was an offer from RCS & RDS to take over the shares,” according to Vreme. The size of the share package which could be listed on the stock market is yet to be decided by a consultant. The state owns 45.9 percent in Romtelecom, while OTE, 54.01 percent. Meanwhile, the head of the OTE group, Michael Tsamaz will come to Bucharest next Wednesday to announce the decision on the possible takeover of the state's share package in Romtelecom. “I am waiting for their offer, which I will give to specialists to analyze. I won't accept just any price. I will also ask for clarifications about the media information pointing to OTE's decision to sack Yorgos Ioannidis from the helm of Romtelecom,” Valerian Vreme has added. Previous media information pointed to an offer of EUR 350 million OTE had made for the remaining share package in Romtelecom.The Romanian state will either sell its share package in Romtelecom, or list it on the stock exchange. OTE has already been asked to file an offer for the remaining share package, which was initially due by the end of last year. RCS & RDS was set up as a cable company 15 years ago by Zoltan Tezsari, who continues to be its majority shareholder. The company has included internet services as well as landline and mobile telephony to its offer recently, having also launched specialized TV channels: DIGI Film, DIGI Sport, Zece TV. According to market reports, its next moves on the market can pose threats to the main telecom companies in Romania, Orange, Vodafone and Cosmote. Recent market information has been pointing to RCS & RDS negotiations to take over rival UPC from Liberty Global. RCS & RDS operates on the Romanian market, as well as in Hungary, the Czech Republic, Slovakia, Croatia and Serbia. The company posted EUR 391 million in revenues in 2009 and a EUR 50 million profit. Romtelecom’s revenues in the first quarter of the year dropped by 10.9 percent, to EUR 166.3 million, while its EBITDA went down by as much as 62.6 percent, to EUR 22.2 million. editor@romania-insider.com