Magyar Telekom Nyrt., Hungary’s former phone monopoly, rose to the highest in more than seven months after incumbents appealed the approval of a fourth mobile provider’s market entry.
The shares rose as much as 3.1 percent and added 1.2 percent to 580 forint by the end of trading in Budapest, the highest level since July 5.
The Hungarian telecommunications authority said its decision to award a fourth mobile frequency to a group of state-owned companies brought an appeal from the three incumbent mobile-service providers, which include Magyar Telekom. The authority, known as NMHH, has 45 days to carry out a second-round evaluation and issue a ruling, it said in an e-mailed statement today.
“This news should give further momentum to Magyar Telekom shares today, as the fourth provider can start building out the network only with a 45 day delay even if the final decision is positive, for the consortium,” Gergely Palffy, a Budapest-based equities analyst at KBC Groep NV’s broker unit, wrote in a research report today.