03. 06. 2005

NOVOSTI CASE: HOLD ON

BELGRADE, June 3, 2005 – Parliament’s Council for Privatisation proposed to the Serbian government that all activities related to the privatization of the Novosti Company should be suspended until the total value of the company’s capital is established. The proposal of the Council, however, was not obligatory to the Commission of Securities which would, according to its president Milko Stimac, declare their decision on recently received proposal from the German “WAC” that had bought 50 percent of “Politika” shares. Stimac said that Serbia and Montenegro owned 30 percent of the company Novosti, while the rest of the company remained in the ownership of small shareholders. “The Commission must stick to the presumption that the central register contains valid data, which was the starting point in the process of privatization and in deciding on the sale of Novosti Company.” Novosti Director and Editor-in-Chief Manojlo Vukotic also demanded the evaluation of ownership in Novosti, which entered the process of privatization during nineties. “The decision of the federal government, that capital of Novosti should be divided on 70-30 ratio, is not a value assessment, but pure political and compromising decision”, said Vukotic. Minister of Economy Predrag Bubalo confirmed to B92 that he had demanded the suspension of the process of ownership transformation of the company, in order to form a majority of shares which would then be offered in bidding. “I have realized that it would be better to stop for a moment and solve certain issues first, and then to proceed in the best possible way for small shareholders, in order to protect interests of both parties”, Bubalo said. Small shareholders of the company Novosti stated that “WAC” offered 2.000 Euros per share as minimal price, thus estimating the value of entire company on 13, 5 million Euros.