JP Morgan has suffered a setback after the Czech Republic cancelled the privatisation of Cesky Telecom, a deal the US bank has been advising on for almost three years.

The Czech government hired JP Morgan and Komercni banka, a Czech bank, in March 2000 to advise on the sale of its 51% stake in Cesky Telecom. The banks have been close to securing their fees twice, but both times the government cancelled the deal.