FRANKFURT (Standard&Poor's) March 23, 2011--Standard&Poor's Ratings Services said today that its ratings and outlook on Austrian telecommunications operator Telekom Austria AG (BBB/Stable/A-2) are unaffected by its recent announcement of a conditional bid for a 51% stake in incumbent telecommunications operator Telekom Srbija a.d. for up to €950 million. Among other conditions, the offer must obtain Serbian regulatory approval and is subject to negotiations with the Serbian government about certain value-creating conditions that would result in an enterprise value to adjusted EBITDA 2011 multiple of about 4.8x. A successful bid would make Telekom Austria the dominant fixed-line and mobile operator in Serbia and somewhat broaden its regional scope through Telekom Srbija's mobile and fixed-line operations in Bosnia
