Tender process questioned by some participants(160 words)

Published: 11/13/2000

Ukraine's State Property Fund (USTP) has reported that employees of the Motor-Sich plant, Ukraine's major engine producer, have successfully tendered for the government's 20% stake of Motor-Sich; although one of the competitive bidders Mega-Motors has appealed against the auction commission's decision accusing them of irregularities in the appraisal of the bids. The employees offered UAH 26.9m ($4.95m) in cash for the stake and won after other bids from other participants included FED Corporation and Mega-Motors were judged to be invalid due to incorrect filings for the tender by the tender. Mega-Motors is owned by the Kiev-based Aviation Repair Plant No.410, aircraft producer Aviant and the Ukraviaprom organisation headed by the former defence minister Valery Shmarov established Mega-Motors. If the employees are successful in securing the 20% holding they will add to what is already a controlling stake in the company.The cost of the employees stake in the company has however, showed considerable increase in value over the last few months given that 5% of the company was sold through the Kiev stock exchange by the government in July for $770,000, over twice the initial price indicated at the time.

Article ID: 2194