Sole Candidate for Bulgarian Tobacco Plants Quits Deal Amid Political Squabbles

01/02/2005

SOFIA, Bulgaria -- British American Tobacco (BAT), the sole bidder for the three largest tobacco factories belonging to Bulgartabac Holding, officially announced its withdrawal from the privatisation deal Tuesday (1 February). In a statement, BAT indicated the decision stemmed from recent squabbling between the ruling NMS-II and its junior government partner, the ethnic Turk Movement for Rights and Freedoms, as well as between the government and opposition. Meanwhile, the defence ministry announced it has cancelled the sale of eight state-run defence factories, due to a lack of investor interest. (Mediapool, bTV - 01/02/05; AP, Reuters - 31/01/05)