Bloomberg News

Magyar Telekom Drops From Month-High on License Bid Report

December 07, 2011

(Updates with closing prices in second paragraph.)

Dec. 7 (Bloomberg) -- Magyar Telekom Nyrt., Hungary’s former phone monopoly, dropped from a month-high after Napi Gazdasag newspaper reported that a state group will bid tomorrow for a mobile-telephone license.

The shares fell 2.9 percent to 507 forint by the close in Budapest, its first daily decline since Nov. 25. The stock was unchanged yesterday at 522 forint, the highest level since Oct. 27, first reached two days ago. The benchmark BUX index of shares slid 0.9 percent to 17,209.27.

Hungary’s state-owned electricity wholesaler MVM Zrt. plans to bid for a mobile-telephone license together with the country’s postal service and state-owned Magyar Fejlesztesi Bank Zrt., Napi Gazdasag reported. Magyar Telekom, which competes with units of Vodafone Group Plc and Telenor ASA, may be hurt by the arrival of a “powerful” state-backed fourth rival, according to brokerage Equilor Befektetesi Zrt.

“The news may have a negative effect on Magyar Telekom,” Akos Kuti, a Budapest-based analyst at Equilor, and colleagues wrote in a research report. “The fourth player may put an end to the golden age of the current trio.”

Hungary’s economy will probably grow between 0.5 percent and 1 percent in 2012, less than a previous forecast of 1.5 percent, Economy Minister Gyorgy Matolcsy told reporters today.

--Editors: Linda Shen, Peter Branton

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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