COMPENSATION HOPES GROW THINNER
Two of the most attractive pools for privatisation against compensation notes are on the brink of collapsing. The recent decision of the parliamentary Economic Commission to move Navigation Maritime Bulgare (Navibulgar) - Varna and River Shipping Company - Rousse into the forbidden list for privatisation caused a flood of negative reactions. Navibulgar is within the so-called dream pool with 30% of its capital and the Rousse company is part of the Energetics pool with a 30% stake.The offered change is explained with the necessity of more time for the preparation of a strategy for the future development of the two companies. The Privatisation Agency (PA) is especially dissatisfied with the decision. It will suffer serious losses because it will have to pay damages to the consultant, chosen for the privatisation of the two companies - the consortium of PriceWaterhouseCoopers - Bulgaria, Lega InterConsult - Penkov, Markov Partners and Tebodin Bulgaria. The PA signed the agreement with the consultant on October 7 and the experts are presently working on the privatisation strategy for Navibulgar and River Shipping Company as well as on the legal analyses. If the decision of the economic commission is enforced by the Parliament, then the whole work of the consultant will become useless.As for the investment intermediaries, appointed by the PA to trade the small stakes of the two companies, they will be left in complete dismay after this entangled compensation story.An intermediary for the dream pool is the consortium between National Bank of Greece, UBB and Bulbrokers. The agreement with the intermediary was signed on October 31.