BGN 87 M of Bulgaria's telecoms operator 2002 profit has been transferred to the state budget under an order of Transport Minister Plamen Petrov of May 9.

Shareout of 2002 profit dividend was one of the contentious issues that remained open before the telecom deal was nixed when the Supervisory Board of Bulgaria's sale body scrapped the sale of BTC to US private equity firm Advent. The supervisors cited legal inconsistencies, among which the right given to BTC investor to take decisions on paying out 2002 dividend.

After a three-member panel of the Supreme Administrative Court overruled the decision of the Supervisory Council, Joanna James, Advent International managing director Central and Eastern Europe, announced that Viva Ventures, wholly owned unit by Advent International, is ready to consider sweetening its bid to EUR 280 M for 65% of the telecom's shares and allocate last year's dividend to the state budget.

Before the court ruling Viva Ventures insisted that the 2002 dividend must go to the selected buyer and not the state.

At the beginning of July the Supervisory Council of the Privatisation Agency decided to appeal the ruling of the three-member panel of the Supreme Administrative Court.

A five-member panel of the court will convene at an open session on July 18.

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