AIRPORT PRIVATIZATION FAILED

According to our informations the Metropolitan Court approved of the ruling of the first instance in the case of Budapest Airport Company yesterday i.e. it declared the tender for its privatization invalid.

Probably the State Privatization and Holding will find a new strategy and announces a restricted tender though it is not yet known all the original bidders or just the firms selected in the last round would be invited. The verdict will be sent back to the first instance court which will inform the clients about the ruling. Sándor Nyúl, operative director-general of TriGránit Company said to Magyar Nemzet it was very difficult to make any investment in Hungary because of the bureaucracy and because the self-governments want to solve their local problems with the help of the investors. Sándor Nyúl claims it would have been important to have Budapest Airport in Hungarian property because that would serve Hungarian interests in the long run. Sándor Csányi, president-director general of OTP Bank and Nathaniel Rotschild, president of Atticus Capital have bought recently 25 pc of the shares of TriGránit Company from AIG New Europe Fund and from EBRD. Last year TriGránit invested great sums in Poland and Romania but in Hungary the bureaucratic procedurs are very slow. Sándor Nyúl said the consortium of OTP, MOL, and TriGránit would represent the Hungarian interests much better than a foreign firm. TriGránit Company wishes to make further investments in Romania, Poland, Slovakia, and Bulgaria, as profits are very low in Western Europe.

Translated by Péter Szentmihályi Szabó