RCS&RDS believes Romtelecom will interfere with RCS-UPC transaction

RCS&RDS operator is considering the possibility of rival Romtelecom interfering in the fight for UPC Romania, which would complicate the battle for the acquisition of the second-largest operator on the television services market, with 1.2 million clients. RCS&RDS, 'the enfant terrible of the telecom market', controlled by Oradea businessman Zoltan Teszari, 41, wanted to strike gold by acquiring UPC, before the other players could do anything, and create a group with around 10 million television, Internet, fixed and mobile telephony subscriptions and nearly one billion dollars in annual turnover.
However, when the negotiations between RCS&RDS and UPC became known on the market, other players became interested in UPC, in keeping Teszari's company from consolidating into a telecom market 'monster', which could control cable or Internet prices through to what Romanians see on TV, more than anything.
"RCS is considering the possibility of Romtelecom entering talks to take over UPC," said a source close to the Oradea-based company.
Another source says: "It is to be expected that Romtelecom would become involved, as well, at least to boost the price a little and to find out the details of the transaction."
On the other hand, Romtelecom declined comment. A week ago, after it became known that RCS was in talks with UPC, the first reaction, an unofficial one, was: "We would like to, but the Germans won't let us do it." Although Romtelecom is held by Greek group OTE (54% stake) and the Romanian state (46%), from a strategic point of view the company is controlled from a distance by Deutsche Telekom, OTE's biggest private shareholder.