Supreme Court Hears Case of Tobacco Holding against Bulgaria's Sale Body

Business | May 14, 2003, Wednesday // 00:00| Views: | Comments: 0
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The Supreme Administrative Court will hear today the case instituted over the complaint of Austria's Tobacco Holding GmbH from March 13.

In its complaint Tobacco Holding points out that in a letter dated March 7 the Privatisation Agency informed the bidder that access to Bulgartabac's updated data room will not be granted under the amendments to the Privatisation Act.

The complaint is also against terminating the procedure for sweetening offers for Bulgartabac.

Tobacco Holding was one of the bidders for Bulgaria's tobacco giant.

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 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.
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