The Bank Consolidation Company (BCC) formally launched a marketing campaign for the privatization of Commercial Bank Biochim Plc, according to a September 27 decision of the Board of Directors. The bank will be privatized through a sealed-bids auction. Letters were sent to Bulgarian and foreign that banks that are considered as the likeliest potential buyers. When the replies from the potential investors are received, the BCC will make a formal decision on initiation of due diligence procedures and will set a closing date for submission of bids. The BCC will make a preliminary assessment of potential buyers on the following priority criteria: financial stability, transparent shareholding structure, operating history, overall reputation in banking and financial circles, and ability to contribute to the development of the Bulgarian banking sector. This is the third attempt to divest Biochim, after two earlier ones failed. The first competitive bidding was held in 2000, but the winner was rejected because most of its capital was owned by off-shore companies. Only bidder stepped forward in the second procedure, in March 2001, and the sale fell through as the parties were unable to reach agreement on the price. On September 27, 2001 the BCC Board of Directors decided to initiate a new procedure without setting a deadline. The idea is to find a strategic investor for the bank.

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