The discontinuation of the negotiations for Bulgartabac privatisation is not a failure, Prime Minister Simeon Saxe-Coburg commented April 4.

One talks of a failure when the decision taken is against the interests of the state and it is just the opposite with Bulgartabac case, he pointed out.

The Cabinet approved April 3 the proposal of the Privatisation Agency to discontinue sale negotiations with Tobacco Capital Partners, as well as the whole privatisation procedure for Bulgaria's tobacco holding Bulgartabac.

The Privatisation Agency, along with the Agriculture, Economy and Finance Ministries will join their efforts to open a new procedure for the privatisation of Bulgartabac, Iliya Vassilev, head of Bulgaria's sale body, said.

The procedure for an 80% stake in Bulagrtabac equity was won twice in 2001 and 2002 by Deutsche Bank-owned Tobacco Capital Partners. In the middle of March Bulgaria's Parliament approved the Cabinet's decision for naming EUR 110 M bid of Deutsche Bank-owned Tobacco Capital Partners a winner for 80% stake in Bulgaria's tobacco monopoly Bulgartabac.

The main factor that tripped the sale however was the bank guarantee, which in the words of Economy Minister Vassilev, did not comply with the Privatisation Agency requirements. The bank guarantee arrived as late as Saturday morning.

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