Bloomberg News

Magyar Telekom Rises to August High on Unit Sale: Budapest Mover

August 29, 2012

Magyar Telekom Nyrt., the Hungarian unit of Deutsche Telekom AG (DTE), rose to the highest this month after agreeing to sell its digital radio network operator unit to a state-owned telecommunications company.

The shares increased 1.2 percent to 428 forint by 10:20 a.m. in Budapest, compared with an all-time low of 386 forint reached on Aug. 10. The benchmark BUX stock index advanced 0.3 percent.

Magyar Telekom will receive 19.9 billion forint ($88 million) for its fully-owned Pro-M Zrt unit, the company said in a statement to the Budapest Stock Exchange today.

“The transaction may improve the short-term cash position, though it’s questionable how it will affect the company’s competitive position from a strategic point of view,” Zoltan Reczey, an analyst at Buda-Cash Brokerhaz Zrt., wrote in an e- mailed note today.

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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