Croatia: Babcock Borsing targets Montaza

4. Juli 2006, 00:00

After Austrian Christof Groupe and Croatian civil engineering cluster headed by Croatian Civil Engineering Institute...

After Austrian Christof Groupe and Croatian civil engineering cluster headed by Croatian Civil Engineering Institute expressed interest in the acquisition of shares of Djuro Djakovic Montaza, another letter of intention arrived from the company Babcock Borsing Service.

The latter company is a long-time foreign partner of Montaza. It has become - after bankruptcy several years ago - a part of second largest international construction concern Bilfinger Berger AG, with the annual turnover of more than EUR 7 billion.

Babcock Borsing Services annual turnover is about EUR 400 million, with a tendency of becoming a leading constructor of power plants in this growing market. Commenting on the arrival of the third letter on intention, Montaza Director Darko Katic said that he does not see any reason why the companys privatisation process should not be started as soon as possible.

"The market is interested in our company, we are looking into new deals, and thanks to our quality we can become even more successful. But it seems that privatisation of our company is not business, put political question," claimed Katic.

Director of Montazas Germany Office Jozo Nikolic, who has established first contacts with bidders, said that stalling with the reply to potential buyers could redirect necessary investments to competitors, which would result in stagnation of Montaza.
Eastbusiness.org
In cooperation with and under the responsibility of Eastbusiness, the business information service for Central and Eastern Europe

You can subscribe to the following newsletters
Eastexpress
CEE-Country
Share if you care.