Magyar Telekom Drops on Toll Tender Loss Report: Budapest Mover
Magyar Telekom Nyrt., the Hungarian unit of Deutsche Telekom AG (DTE), dropped for the first time in six days after Bitport reported the company’s T-Systems unit is set to lose a tender to supply an electronic road toll system.
The shares fell 0.8 percent to 389 forint by the end of trade in Budapest, the biggest decline since Dec. 21. The benchmark BUX stock index, in which Magyar Telekom has the fourth-biggest weighting at 11 percent, rose 0.6 percent.
Hungary will sign the toll contract with Getronics by Jan. 15, technology website Bitport reported, citing Development Ministry State Secretary Vilmos Valyi-Nagy. The signing of the contract was delayed after T-Systems disputed the process, Valyi-Nagy said. Magyar Telekom rallied Jan. 4 after newspaper Napi Gazdasag reported that T-Systems may emerge as the winner.
“It seems the state is still favoring Getronics,” Jozsef Miro, a Budapest-based analyst at Erste Group Bank AG, wrote in an e-mailed report today. “That is unfavorable for Magyar Telekom as earlier reports said T-Systems may be the winner.”
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