Negotiations on possible sale of 30% stake in Kazakhtelecom OJSC to EBRD stopped

/IRBIS, March 7, 01/ - The Great Silk Road World News Agency informs that the President of Kazakhtelecom, A. Bektasov, said that negotiations on the possible sale of a 30% state shareholding in Kazakhtelecom to the EBRD have ceased because Kazakhstan's Government already has sufficient spare capital. Another reason was the low price offered by the EBRD. Bektasov said the 30% stake in Kazakhtelecom was worth perhaps $150 mln, while the EBRD had bid only $70 mln. He takes the view that the EBRD "intended to profit from the disastrous state of Kazakhstan's economy". Kazakhtelecom has started preliminary talks on a $25 mln loan from the EBRD, said Bektasov. At present, Kazakhtelecom shares are held by the following: the Government - 50%, Central Asian Investment (an affiliate of Kazkommertsbank) - 30.06%, Bank of New York - 6.97%, preference shares - 10%, and minor shareholders - less than 1.3%.