[Intl-tobacco] Bulgaria to Extend Bidding for State-Owned Tobacco Company (fwd)

[Robert Weissman]

Bulgaria to Extend Bidding for State-Owned Tobacco Company
by Elza Vladimirova
Source: Bloomberg News, Friday, 7/21/00

 Sofia, July 21 (Bloomberg) -- Bulgaria will extend bidding for
Bulgartabac AD in a move to boost revenue from the sale of a 51 percent
stake in the nation's largest tobacco company.

Bulgaria said it would announce new conditions for bids next week, which
would include opening the sale to financial institutions. The original
plan called for selling Bulgartabac to an industry investor with a July 24
deadline for bids. Dresdner Kleinwort Benson and Creditanstalt are
advising on the sale.

The government has received letters of intent from Philip Morris Cos., the
world's largest tobacco company, Gallaher Group Plc, U.K. maker of Silk
Cut and Mayfair cigarettes, with Reemtsma Cigarettenfabriken GmbH,
Europe's No. 4 tobacco company, saying it was interested in individual
assets, not the entire holding.

``After the talks held so far, it cannot be guaranteed that there will be
enough competition just among the manufacturers,'' said Slavka Bozukova,
Economics Ministry spokeswoman.

Bulgaria wants to sell the tobacco holding by the end of the year, as it
picks up pace in its program for selling state assets to satisfy
international loan agencies and prepare itself for eventual entry into the
European Union.

Bulgaria last month approved the sale of Bulbank AD, the largest
state-owned bank, to Unicredito Italiano SpA and Allianz AG of Germany,
for 360 million euros ($336.6 million). Talks have stalled with the
Dutch-Greek venture Royal KPN NV and Hellenic Telecommunications
Organization over the sale of 51 percent of the state's Bulgarian
Telecommunications Co.