NYTimes.com Article: Hungary Makes Another Effort to Sell Malev

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Hungary Makes Another Effort to Sell Malev

September 7, 2004
 By THE ASSOCIATED PRESS





Filed at 11:06 a.m. ET

BUDAPEST, Hungary (AP) -- 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.

http://www.nytimes.com/aponline/business/AP-Hungary-Airline-Sale.html?ex=1095583888&ei=1&en=04e5734c0b2ec170


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