JP Morgan has decided not to re-bid for the mandate to advise the Czech Republic on the privatisation of Cesky Telecom, leaving the door open for rivals to scoop success fees when the sale is rescheduled later this year, according to a source close to the bank.

The government hopes the 51.1% stake sale, which was shelved in December after two years preparatory work by JP Morgan and Komercni Bank, will be completed by 2005. A spokesperson at the Czech Finance Ministry said it plans to conduct a beauty parade over the next two months to choose its new adviser.