Romanian telecommunications operator RCS&RDS, controlled by businessman Zoltan Teszari, is close to acquiring rival UPC Romania (formerly Astral) in a transaction that could amount to around USD 300 million, local daily business newspaper Ziarul Financiar writes citing market sources. According to some market sources, Teszari, who holds 43 percent in RCS&RDS, is in the process of selecting the investment bank for financing this transaction. If concluded, the transaction would fundamentally change the entire Romanian telecom market, which is extremely fragmented and where competition is fierce. The other shareholders of RCS&RDS are investment funds Epic and Quadrant and a few Romanian businessmen and managers of the firm. Teszari has had talks with investment banks since the end of 2010, which included Goldman Sachs, Credit Suisse and Morgan Stanley, in order to structure such a transaction. He is now in the process of selecting the bank that will finance the transaction. Talks are held in Vienna. Bankers should offer RCS&RDS, a company with revenues in excess of USD 700 million, financing both for the acquisition and for rescheduling debts that RCS&RDS is due to pay in the coming period. This year the company needs to pay back USD 175 million, and, according to market sources, "the problem is partly solved." Liberty Global, UPC shareholder, last year hired investment bank Rothschild to find solutions for UPC Romania, which in 2004 bought local cable operator Astral for USD 400 million. According to sources, Liberty could be willing to sell Romanian operations.
