Roman Olearchyk writes: Epic, a Vienna-based investment house, has agreed to acquire a 93 per cent stake in Ukraine’s state telephone company for $1.3 billion after rivals were kept out of the privatization tender. The government is offering Ukrtelecom to Epic at just $10 million more than the $1.3 billionstarting price that was set in the privatization tender last December. Domestic investment banks argue the government could have generated up to $1.8 billion for its cash-starved budget coffers through a competitive sale. Alexander Valchyshen, head of research at Investment Capital Ukraine, a Kyiv-based investment bank, said: “[President Viktor Yanukovych's administration declared plans to conduct competitive and transparent privatizations that raise maximum funds for budget coffers and showcase Ukraine to investors, but this sale has not demonstrated it ... We continue to see tenders which are open for a select few.”
EXCLUSIVE
