27-Oct-2009 1:10 PM

Czech Government rejects bid for Czech Airlines

Czech Government rejected the sole bid for Czech Airlines (CSA) by Unimex-Travel Service Consortium, which submitted a bid on 30-Sep-2009 of CZK1 billion (EUR38 million) to acquire a 91.5% stake in the carrier (Reuters, 26-Oct-2009). The bid was rejected due to the low and unfavourable price. The carrier’s negative equity value reached in excess of CZK700 (USD27 million) by mid 2009. The government reportedly plans to capitalise some of the carrier’s debt, including CZK2.5 billion (EUR96 million) to Osinek. However, the proposed capital injection is subject to approval by competition authorities. CSA reportedly expects to report a CZK3.2 billion (USD123 million) loss in 2009.

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