Serbia Abandons Telekom Srbija Privatization

The Serbian government has rejected all offers for a majority stake in the country's state-owned phone company, Telekom Srbija.

Prime Minister Aleksandar Vucic said on December 11 that none of the six binding bids was as high as the government and unions had hoped for and that the company would therefore remain in state hands.

Serbia holds 58 percent of Telekom Srbija shares, while 20 percent are controlled by the firm itself, and 7 percent are in the hands of its 9,800 employees.

It was Serbia's second attempt to sell Telekom Srbija, which operates landline and mobile phone networks as well as a cable TV network.

In 2011, it turned down an offer of 1.1 billion euros ($1.2 billion) by Telekom Austria for a 51-per-cent stake in the company.

Based on reporting by dpa and Reuters