IMF CONSIDERS GOLDEN SHARE OBSTACLE TO MONOPOLIST SELL-OFFS

Business | February 26, 2002, Tuesday // 00:00

Bulgaria's decision to keep golden shares in telecom and tobacco monopolies after privatisation may discourage investors and further hinder the already difficult sales, the IMF and analysts said, quoted by Reuters. The government plans to sell up to 65 % of Bulgarian Telecommunication Company and up to 80 % of tobacco company Bulgartabac Holding by mid-year while retaining golden shares to take part in key decisions concerning their future. "We are concerned that if the government keeps a golden share it could affect investors' interest because they want to make sure they will have full control on how to run a company," the IMF's Resident Representative in Sofia Piritta Sorsa said. The two deals are seen as Bulgaria's biggest this year, which are expected to ensure considerable investment.

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