Romaero put on the block before the resolution of outstanding dispute

Published: 11/29/1999

It seems that, despite the fact they have not completed arbitration with Britten Norman over the privatisation of Romaero, the Romanian State Ownership Fund (SOF) is going to restart the privatisation process of the Romanian producer. According to Sheila Dewart of Britten Norman, the company considers that it still has a contract and awaits the outcome of the arbitration process before deciding on its next move. The original deal was unilaterally cancelled by the Romanian authorities earlier this year, after Britten Norman sought a reduction in the deal price following due diligence. According to the SOF, the reason for the cancellation related to a dispute between the two parties over tax and tariff breaks. Local sources have said that the deal only came into question when bids emerged from other sources at higher levels than that being offered by Britten Norman. One rumoured bidder was reported to be a Romanian company with close government contacts, although the government has said that interest has been expressed in Romaero by a number of parties.

Article ID: 1138