No "hurry with sale" says government minister(194 words)

Published: 7/17/2001

It would appear that the government have bowed to the pressure of Aeroflot's management that the selling of the airline in the short term would fail to give the government a return that the company thinks is commensurate with the airline's long term value. Alexander Braverman, the Deputy Minister of Property and one of Aeroflot's Board of Directors, has commented that the state has no plans to sell part of its 52% stake in the near future.This is in contradiction to earlier statements, that suggested a sale could have potentially come in 2001. Although of late the government has made little comment on the sales of the two major airline holdings Aeroflot and the 25% in Siberia Airlines (Sibir) The reason for the delay according to Braverman is that the state sees no reason to “hurry with the sale”, a view it shares with its fellow major shareholders. Braverman did interestingly reveal that the state would have 5-6 seats other airline's nine man board after the forthcoming EGM. Again suggesting that the 29% holding held by companies associated with Russian Aluminium, could take more than the two seats on the airline's board.

Article ID: 2651