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.
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