Hungarian Government Makes Another Effort to Sell Its Troubled Malev Airlines
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
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
President of the Republic of Lithuania Dalia Grybauskaitė welcomed the decision taken by the U.S. Government to transport shipments for the international mission in Afghanistan by transit via the Klaipėda Seaport.
more »
EU Solidarity Fund aid to repair storm damage in France and Portugal was approved by the Budgets Committee on Thursday.
more »
The European Investment Bank and the Government of Samoa formally agreed to support the rehabilitation and upgrade of independent water schemes in the Pacific island state under a EUR 250,000 technical assistance programme.
more »
Steps to overhaul the European Union's flagship single market were discussed on Tuesday (9 November) by MEPs and interested parties.
more »
Strategy to secure a sustainable EU energy supply and support economic growth over the next decade.
more »
EU funding to help 850 former workers in the aircraft maintenance industry around Dublin find new jobs was approved by the European Parliament on Thursday.
more »
Saffron farmers in western Afghanistan hope to oust opium as a harvest crop.
more »
The European Commission has approved an application from Poland for assistance from the European Globalisation adjustment Fund (EGF).
more »
New plans for EU industry to create jobs while keeping manufacturing in Europe.
more »
The European Commission has approved two applications from Spain for assistance from the EU Globalisation Adjustment Fund (EGF).
more »