There was frustration for bankers in the Czech Republic last week after the Dutch telecoms group KPN pulled out of talks about the purchase of a 51% stake in the state-owned Cesky Telekom.

ABN Amro was mandated by KPN more than a year ago to advise on the move, but the talks have been slow and beset by problems. The bank had hoped at one point that the deal would be signed in the spring. Now its client has revised its strategy following the expensive mobile telecoms auctions in Germany and will concentrate on less risky investments in western Europe.