Moody's: Mobiltel up to positive

Moody's Investors Service said it changed the outlook for Mobiltel AD (Ba2 senior implied and Ba3 senior unsecured issuer ratings) and for its wholly owned guaranteed subsidiary Mobiltel Finance BV (Ba2 notes rating) to positive from stable following an announcement by Telekom Austria that it had signed a memorandum of understanding to purchase a call option from the existing shareholders to acquire a 100% interest in the company.

Moody's said the change in the outlook assumes that Telekom Austria will finalize its exclusive negotiations with the existing shareholders of Mobiltel AD to purchase the option by the end of December 2004 and that it could complete the acquisition during 2005 for a total consideration of €1.6 billion.

Moody's said it views the proposed change in Mobiltel's ownership as potentially credit-enhancing given Telekom Austria's strategic interest both in the company and in the Central and Eastern European region and its stronger financial position (Baa2/positive).

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