(adds company reaction, background)
PRAGUE Aug 13 Czech financial group PPF plans
to split its telecoms company O2 Czech Republic into
two parts, business daily Hospodarske Noviny reported on
It would divide the firm into a fixed lines and
infrastructure business, and another business focusing on mobile
connection and other services, the newspaper said, without
stating its sources.
"Nothing has been decided. At the moment it is speculation
in the market," O2 spokesman Martin Zabka said.
A PPF spokesman declined to comment.
The split could free the company from regulatory oversight
which applies to its monopoly in the fixed lines business, the
PPF, controlled by the Czech Republic's richest man Petr
Kellner, acquired a 65.9 percent stake in O2 Czech Republic from
Spain's Telefonica in January.
In July, it raised its stake to 73.1 percent in a mandatory
buyout offer to minority shareholders.
O2 Czech Republic posted a smaller-than-expected 9.5 percent
year-on-year decline in net profit in the second quarter, hit by
a further drop in mobile and fixed-line revenue.
(Reporting by Robert Muller; Editing by Pravin Char and William