THE SALE OF THE STATE INSURANCE INSTITUTE WAS POSTPONED ONCE AGAIN
The Privatization Agency set a new deadline for placing offers for participation in the State Insurance Institute (DZI) privatization procedure - now it expires on February 5th, 2001. The decision was taken on the last working day of 2000 - December 29. The motive for the postponement is trivial - allowing the candidates to prepare better offers. According to well informed sources, however, the actual reason is the lack of serious interest in big investors. Postponing the deadline will facilitate the state in negotiating the most favourable terms for the privatization deal.
There was also another version, according to which the new Privatization Agency management wanted to study the forthcoming deal in detail, in order to reach the desired financial result. The fact that the state is not prepared for the procedure seems to be the most trivial, but also the most realistic reason. By the end of the year the draft contract was still under elaboration, and this is the basis for negotiating the sale. Only in November 2000 the Privatization Agency chose the consultancy company which would prepare the contract for sale and of course it needs time to do so.
As the Banker weekly has written several times, ten companies bought the DZI information bulletin. Among the potential buyers are the Dutch companies TBI and Nacionale Nederland N.V., the Turkish investors Rumeli Sigorta and Demir Sigorta, the Italian Generalli, the French CNP, the German We-We, the pan-European Eureco, the Bulgarian Insurance company Bulstrad and finally the unknown Bulgarian company Re-Engineering.
According to some representatives of the Privatization Agency, the Italian Generally and the German We-We have left the competition. The Bulgarian company Bulstrad also doesn't count, as its major shareholder - TBI - decided to participate in the tender in partnership with the DZI EMBO formation.