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December 2nd, 2008
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RETAIL - French retail chain Carrefour is closing up shop in the Czech Republic and Slovakia, selling its outlets to rival Tesco, the British retail giant announced through a representative Sept. 30. Carrefour, which in 2003 was 465 million Kc ($19 million) in the red here, is leaving the country in line with its strategy to exit markets where it is not one of the three largest retailers.

SALE - The Cabinet approved the sale of the state's 56 percent stake in brown-coal mining company Severoceské doly Sept. 29 to electricity giant CEZ for 9.046 billion Kc, Finance Minister Bohuslav Sobotka announced the same day. The deal raises CEZ's share in the company to 93 percent, allowing it to conduct a squeeze out for the remaining shares.

DELL - Dell Computers, the world's No. 1 manufacturer of personal computers, is considering the Czech Republic as the site for a new plant in Central Europe, according to media reports. Other contenders are Slovakia, Poland and Hungary. The U.S.-based manufacturer is expected to make a decision in the next few weeks.

TELEVISION - Cesky´ Telecom (CT) plans to begin broadcasting television over the Internet at year's end to offset declining revenues from fixed line services, the company's new CEO, Jaime Smith, has announced. CT, the dominant fixed-line telecommunications provider, has seen a 6 percent annual drop in clients, a trend Smith attributed to the fact that telecom providers now offer a greater range of services.

DEBT - Foreign debt increased 44 billion Kc in the second quarter, the Czech National Bank announced Sept. 30. The debt has been growing since European Union accession, according to economic analysts, yet remains at an acceptable level, around 37 percent of gross domestic product.

SAZKA - Sazka Arena has seen a drop in revenue from the lease of skyboxes, the Czech daily Lidové noviny reported Sept. 30. Most of the arena's 66 skyboxes were leased during the World Ice Hockey Championship in May, but rentals are down by 50 percent, the arena announced.

CLOSING - Officials at Promil Novy´ Bydzov announced the company's intention to shut down operations to its 250-member staff Sept. 30. Employees at the largest Czech dairy will officially lose their jobs at the end of December. Until then, they will be out of work but will receive 60 percent of their current wages.


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