Банкеръ Weekly

Briefs

ADDITIONAL EXPLANATIONS DEMANDED FROM CANDIDATE-BUYERS OF BTC

In the beginning of the week the Privatisation Agency (PA) demanded explanations on the two purchase offers for the Bulgarian Telecommunications Company (BTC). By 14.00 hrs on October 7 the two canidate-buyers of Bulgaria's national telecom - the Austrian Viva Ventures, a subsidiary to the US investment fund Advent, and the consortium between the Turkish Koc Holding and Turk Telecom - should reply to additional questions. The problem, according to pundits, is that the offered purchase price has been bound with specific proposals for the new legislative regulation of the sector and the stages of deregulation of the telecom market. Due to the absence of a law on telecommunications, both bids contain a requirement that up to 40% of the price should be blocked in an escrow account. In the selling procedure for Bulgartabac the candidate-buyers demanded the same percentage to be deposited in an escrow account, but on the firm insistance of PA's Chairman Apostol Apostolov the final agreement projected to block 20% of the purchase price.

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