Hungary Makes Another Effort to Sell Malev

Published: 8 September 2004 y., Wednesday
The Hungarian government announced Tuesday that it would again try to sell heavily indebted Malev Airlines, which lost almost 4 billion forints ($19 million) in the first half of the year. The sale will take place in a one-round open tender and bids for the national carrier can be made until Oct. 20, the state privatization agency said. Since its return to democracy in 1990, Hungary has made a number of unsuccessful attempts to sell Malev. In 1997, Hungary bought back a 35 percent share in the airline that it had sold to Alitalia and another Italian investor after the European Union forced the Italian carrier to sell its foreign interests. This time around, Hungary will be selling a 99.95 percent stake in the company and said buyers would have to pay 90 percent of the purchase price in cash, inject fresh capital and take over Malev's debts, which in July stood at 36.7 billion forints ($179 million). Of the debt, 33 billion forints are guaranteed by the state. The privatization agency said bidders would also have to show how they intend to preserve Malev's status as Hungary's national airline. Although the agency did not elaborate, the government has said that status would give the airline competitive advantages within the EU.
Šaltinis: AP
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