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Magyar Telekom Rises on Report Hungary Faces EU Court on Tax

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March 22 (Bloomberg) -- Magyar Telekom Nyrt., Hungary’s former phone monopoly, rose for a second time this week after Napi Gazdasag reported the country faces a European court case over its refusal to abolish a special tax on telecommunications companies.

The shares added 0.5 percent to 572 forint by 9:19 a.m. in Budapest.

The European Union will refer Hungary to the European Court of Justice because of the tax which the EU says breaches its rules, Napi Gazdasag reported today, without saying how it obtained the information.

“If the court decided in favor of the telecommunications companies, that would help Magyar Telekom’s stock, while leading to higher government bond yields and a weaker forint,” Akos Kuti, an analyst at Budapest-based broker Equilor Befektetesi Zrt., and colleagues wrote in an e-mailed report today.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net