The Czech government has said it is selling a majority stake in the country's former telecoms monopoly to a German-Danish group.

A consortium of Deutsche Bank and Danish telecoms firm TDC will pay 1.82bn euros ($1.77bn; �1.15bn) for 51% of Cesky Telecom, Czech officials said.

The price represented a 26% premium over the market price of Cesky Telecom, which is the Czech Republic's largest stock market-listed company.

"People are celebrating here. Not because of the price but because the talks are finally over," one of the winning bidders said.

The company's general director, Premysl Klima, said: "I am glad that the government has taken a decision on the privatisation and has therefore ended a period of some uncertainty.

"I personally believe that this decision will have a positive effect on the commercial running of the company."

Industry sources said they expected the sale would be completed by the end of the year.

Paying for fighter jets

The privatisation process - for long a strategic aim of the Czech government - had been held up by elections in June and the government's decision to send back earlier bids and ask for improved offers.

The government needs the sale proceeds to help pay for social programmes and a $1.8bn deal to buy fighter jets.

Cesky Telecom is eastern Europe's most profitable telecoms firm.

It operates 4 million telephone lines, enjoys a near monopoly over voice, online and data services and owns 51% of Eurotel, a leading local mobile phone operator.