GENERALLI MADE A FINAL NEGATIVE DECISION ON DZI
Generalli has made a final decision to not participating in the bidding for the State Insurance Institute (DZI). In December 2000 we have informed Deloitte Touche, the PA consultant for this privatization deal, as well as DZI management about the decision of our customer not to participate in the tender, said to the Banker weekly Alexander Sabotinov, manager of Raiffeisen Investment's Bulgarian branch - the consultant of the Italian insurance company on its participation in DZI privatization. The reason for Generalli's withdrawal was that the investment risk level in Bulgaria did not meet the expectations of the Italians.
There were some doubts, which showed in some papers, that actually Generally have not given up their participation in the tender, but they are not satisfied with their consultant. That forced them to pay up the services and to appear at the tender with a new consultant. Sabotinov, however, denied any conflict between his company and their customer.
The Banker weekly was the first to inform about Generalli's changed in attitude even last December. At that time came the information that the Italian company would not study the documentation at the DZI information hall. At that moment Generalli's representatives cancelled their meetings with the DZI management. Couple of days later came the information from Deutsche Welle that the Italians were actually not withdrawing, but they would participate through a subsidiary. This, however, was not officially confirmed.
Along with the talks that Generalli was leaving the bidding for DZI, came the information that the Italians have already contacted another Bulgarian insurance company - Vitosha. Vitosha management refused any comments. Later, however, it became clear that negotiations did take place, and according to some sources, the only reason for not reaching a contract was the rather high price asked for Vitosha's major package of shares.