Cinven hikes offer for Telekom Slovenia to 130 eur/shr, says source-Reuters

(Reuters) – Buyout group Cinven, the only bidder for telecom operator Telekom Slovenia, has hiked its offer to 130 euros a share to win over Slovenian authorities facing criticism they could be selling on the cheap, a person familiar with the transaction said.

“Negotiations have ended, a final offer has been submitted,” the source said on Wednesday.

Slovenian state investment fund SDH, which is coordinating the sale, was not available for immediate comment but had said last month that talks on the sale were expected to end in May.

The offer consists of an upfront cash payment of 110 euros a share, an additional payment of 15 euros a share depending on the outcome of ongoing litigation at Telekom Slovenia and an additional 5 euros a share depending on the company’s performance, the person added.

Previously Cinven had offered only about 110 euros per Telekom share, sparking doubts over whether the sale would be completed as many Slovenian policy makers rejected a sale at this price.

Shares of Telekom closed 4.8 percent higher at 109 euros, while the blue-chip SBI index gained 0.5 percent.

Telekom, with a stock market value of 712 million euros, is the largest of 15 companies earmarked for privatisation in 2013. So far four of those firms have been sold.