Deutsche Telekom will veto a proposed privatization of Telekom Srbija so it can gradually increase its stake in the telco, a leading trade unionist claims.
Milorad Joksimovic, president of the Telekom Trade Union, said a proposed sale of 40% of the national carrier would be unsuccessful, because Deutsche Telekom was keen to ensure no other player held a stake larger than its current 20% share.
Joksimovic called for the proposed sale to be postponed until the telco can pay off debts of €630 million owed to Citigroup Global Markets, which has submitted an offer for the 40% stake, business news site Balkans.com reports.
Deutsche Telekom has previously refused to comment on reports it was looking to increase its holding in Telekom Srbija, after Serbia’s Prime Minister Mirko Cvetkovic unveiled plans for a sell-off in April.
If the sale goes ahead, the buyer would immediately gain control over the state telco, with the Serbian government, Deutsche Telkom, and Greece’s OTE each holding a 20% stake.