Vodafone is contemplating a bid for the Czech Republic's biggest telecommunications company. Cesky Telecom has interests in both fixed line and mobile.

The Czech government has appointed Credit Suisse First Boston to advise on a possible privatisation, to be launched in September.

The prize is 3.6m fixed line and 4.3m mobile subscribers, in the newly opened Eastern European market.

Citigroup has been appointed as an advisor on options for Vodafone.

Orange, Deutsche Telekom and TDC are all in the running.

A mechanism for the privatisation has not been set. It is thought likely that 51% will be sold to a trade buyer. However a flotation is possible.

Previously Vodafone has brought mixed businesses such as Cesky Telecom and then sold the fixed-line divisions.