Tuesday, May 06, 2008

Latvian telco privatization --writing off yet another year?

Latvia and Sweden are similar in that both countries stop for a while after the Midsummer holiday. This is more pronounced in Sweden, but Latvia's parliament also goes on vacation after June 22, if not earlier.
With the next round of talks on the proposed Lattelecom for LMT swap set for May 21, it is unlikely that anything will be resolved before Midsummer. That essentially kicks the next "round" of the never-ending story into September, which, even if the both parties to the talks decide to go ahead, do valuations, etc., means that nothing will happen before the end of the year. So look to 2009, maybe, as the next possible time when this matter may finally be resolved. But don't count on it. 
Meanwhile, Lattelecom remains leaderless, a few more important mid-managers may leave and the value of the company will continue to drift downwards.

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