The Ministry of Finance will propose, at a Cabinet session tomorrow, that the state-owned Konsolidacni banka be allowed to bid up to CZK 1.4 bil. for a 49.25% stake in Aliachem. Aliachem is a highly indebted chemical holding, currently in bankruptcy proceedings and is for sale. The only other bidder, Agrobohemie, is 50%-owned by Unipetrol, and is offering less (reportedly, CZK 815 mil.). The Ministry of Finance’s proposal indicates, in our view, that Konsolidacni banka has a better chance of winning the Aliachem stake, but, in fact, we would consider this outcome better for Unipetrol. Should Unipetrol win the stake, we would be concerned about the additional debt it would have to assume and about the impact of buying a troubled, inefficient business.
(Ladislav Kovář)