Bulgaria's Telecom Sale Expected Back in Court_x000d_

23.06.2003 Source: Novinite.bg

The Supervisory Council of Bulgaria's Privatisation Agency is expected to appeal the ruling of the three-member panel of the Supreme Administrative Court, which favoured Advent's appeal against the agency decision to scrap the EUR 210 M sale of a 65-percent stake in Bulgarian Telecommunications Company BTC to U.S. private equity fund Advent. According to local media reports the motives of the three-member panel are not strong enough and will be refuted by the five-member panel. Other reports hinted at a political decision on the issue. A meeting of Prime Minister Simeon Saxe-Coburg and Ahmed Dogan, leader of ruling coalition ally the Movement for Rights and Freedoms, has been scheduled for next week. The court favoured Advent's appeal against the agency decision, ruling it in breach of the preliminary deal, since the draft contract for the sale has been ratified by the two sides. In defending its decision the court pointed out that Viva Ventures Holding, wholly owned unit by Advent International, is the company to acquire the shares. The preferred buyer has been named with a decision that has come into effect and an investment programme for a five-year period presented. The transfer of shares after the third year has been guaranteed by the contracts, the court says. The Supervisory Council is due to decide whether to appeal the ruling of the court next week, Petko Nikolov, chief of the Supervisory Council of Bulgaria's sale body told local Darik Radio, describing as plausible an eventual rejection of the decision. This is not the fist time that the Supreme Administrative Council serves the interests of Viva Ventures, the telecom's former chief Grozdan Karadzhov commented in a separate development. The ruling of the Supreme Administrative Court can be appealed before a five-member panel of the same court within fourteen days.