Wednesday, June 27, 2007

Luhanskteplovoz sold illegally

A law court of Kiev has partially satisfied a legal action submitted by joint stock company "Dniprovagonmash" and ruled that the sale of 76% of the shares of "Luhanskteplovoz " to the Russian buyer "Bryansk Machine Building Plant" was illegitimate. Furthermore they considered that the shares should be returned to the Ukraine State Property Fund.

The court also ruled that "Dniprovagonmash" should have been permitted to take part in the tender competition. Mysteriously, only two Russian companies, which are affiliated to one another, were allowed to take part - Bryansk Machine Building Plant's bid of $58.5 million proving to be successful.

Independent investment assessors had valued the packet of shares on offer, together with a controlling premium, at around $100 million.

"Dniprovagonmash" is linked to some of the richest Ukrainian businessmen, Dnipropetrovskiites Serhiy Tyhypko, Ihor Kolomoysky, and Gennadiy Boholyubov.

Will the State Property Fund's leader, Socialist Valentyna Semenyuk be sacked? Will the court's ruling be challenged/ignored?

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