Magyar Telekom Drops to 2-Week Low on No Tender: Budapest MoverAndras Gergely
Magyar Telekom Nyrt., the Hungarian unit of Deutsche Telekom AG, dropped to the lowest in two weeks after the government called off a tender for an electronic road toll system in which one of its subsidiaries ran as a bidder.
The shares declined 1 percent to 397 forint, the lowest closing level since Jan. 9. The benchmark BUX stock index slid 0.2 percent.
Getronics, which won the original tender, withdrew its bid last week citing lack of cooperation by its sub-contractors. Magyar Telekom’s T-Systems unit was a runner-up in the contest.
Hungary’s government decided not to repeat the public procurement process for setting up the toll system, which will be installed directly by the state instead, Prime Minister Viktor Orban said at a press conference broadcast on the government’s website today.