Viva Ventures, which was invited to sign the contract for the sale of 65% stake in Bulgaria's dominant telecom carrier BTC by February 20, may back away from the deal if the telecom does not get a GSM licence. The condition has reportedly been stipulated in the privatisation contract due to be signed, local media say, citing high-ranking government officials. Following the signing of the contract the Privatisation Agency will submit a proposal to the State Communications Regulation Commission (SCRC) for granting to BTC the licence for Bulgaria's third GSM operator. Experts project the price of Bulgaria's third GSM operator to exceed BGN 200 M should an open bidding tender be invited. Otherwise the award of the GSM licence to Viva Ventures is set at BGN 54 M. The first Bulgarian mobile operator, Mobiltel, acquired its frequencies license for the price of USD 100 M. Greek Telecom OTE won the bidding for the second domestic GSM operator with its offer of USD 135 M. Deputy Prime Minister and Transport Minister Nikolay Vassilev ratified on Tuesday the documents which pave the way for inking the deal. The signed papers include shareholders' agreement, a contract on managerial services, BTC statutes as well as an annex to the sale's contract on the regulation framework. All of the documents come into force after the deal is concluded. The invitation that Bulgaria's sale body extended to Viva Ventures, wholly-owned unit by British-based equity house Advent International, broke a two-year deadlock on the landmark deal, for whose finalization the licence issue used to be one of the conditions. Under the deal Viva Ventures Holding will buy 65% of BTC for EUR 230 M. It also pledges to raise BTC's capital by EUR 50 M. Viva must invest a further EUR 700 M in the operator, EUR 400 million of the amount within five years after the acquisition. The bidder plans to reduce the BTC staff to 20,530 from some 24,800 by 2006. Advent International has pledged to remain an owner of 100% of the capital of Viva Ventures shares in the next three years.