Telefonica buys Telecom

12-04-2005

The Spanish telecoms giant Telefonica has bought a majority stake in Cesky Telecom. Under a contract signed in Prague on Tuesday, Telefonica will pay the Czech government 82.6 billion crowns for its 51.1 percent shares in the company. The government will use the revenue to finance social and environmental projects, cover the losses of the bail-out agency Ceska Konsolidacni Agentura and to implement the planned pension reform.