Svyazinvest to Be Sold Bag and Baggage
Russia’s Cabinet approved Wednesday, September 7, 2005, the president’s draft on crossing Svyazinvest out of the list of strategic assets of the country. The analysts view this move of the government as a turning point en route to privatization of the 75-percent stake in Svyazinvest. Some of them, however, are still apprehensive - no sale terms for the state-run stake have been elaborated yet.
Russian Prime Minister Mikhail Fradkov sealed the draft ruling on Svyazinvest privatization on September 7, 2005. Now, the document is at disposal of the president’s administration. It looks like the whole state-run stake in Svyazinvest, i.e. 75 percent less a stock, will be put up for sale, Interfax reported quoting a source with the government’s staff.
According to analysts, the obvious progress in Svyazinvest privatization is bound to improve investment attractiveness of its companies. The stake could be auctioned already in the first quarter of the next year, some of the experts forecast.
But there is another point of view, which is not so optimistic. Quite a few analysts say it is too early to speak of the definite dates for privatization – the final terms of the deal have not been promulgated, moreover, the State has not elaborated them so far.
The market was quick to respond to the news. True that the stocks of Svyazinvest’s companies - Rostelecom and seven interregional telecoms - shed on MICEX and RTS yesterday, but the losses (1 percent on average) were not so hefty compared with other blue chips. Apart from telecoms, the stocks slid from 2 percent to 3 percent on average Wednesday on the general slump in the crude oil prices in the world. The analysts said Svyazinvest withdrawal from the strategic list enabled the telecoms to keep afloat.
by
www.kommersant.com
All the Article in Russian as of Sep. 08, 2005
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