Following a lot of political pressures, in addition to the harsh stance embraced by France-based steel and iron Usinor Group, the Romanian authorities decided to postpone for a few days the signing of the contract for the privatisation of Sidex with British-Indian Ispat Group.
Meanwhile, French PM Lionel Jospin is expected to arrive in Bucharest. The delegation might also include Usinor chairman. The French want to prevent Sidex from being sold to Ispat, as the latter would become their main rival on the international market if it buys the Galati-based plant.
The latest news from the Privatisation Authority reveals the postponement is just PM Nastase’s way of being polite to his French counterpart.
If nothing happens at the political level following the French PM’s visit, the deal with Ispat is supposed to be closed by Wednesday next week.
The Government yesterday debated the privatisation contract and authorised the governmental commission that negotiated the deal to sign the papers with Ispat.
Ispat representatives did not care to make a comment after having learnt about the delay. Victor Cionga, chairman of Raiffeisen Financial Advisers Romania – Ispat’s consultant for the privatisation of Sidex, did not make any comment, either. Nor did the French at Usinor.
“No comment for now. The statements will be made during PM Jospin’s visit,” Marc Lacroix, chief executive and chairman of Usinor Consultants Board, told Ziarul Financiar.
The general manager of Sidex, Dan aoiman, in his turn says this is a “delicate” issue (i.e. the postponement) and that he has no comment either.
The contract was supposed to be signed today. By Thursday morning, no one had any doubts about the signing actually taking place, as agreed upon by the parties involved in the transactions.
The chairman and owner of Ispat Group, Lakshmi N. Mittal, was supposed to come today to put his signature on the contract.
The Government was making all the arrangements for the signing that should have taken place in the “Sala de Parchet” (the Parquet Room) located at the first floor.
Wednesday night, Privatisation minister Ovidiu Musetescu said the Cabinet would not give up the co-operation with Ispat and the privatisation contract of Sidex would be signed “unless nothing spectacular occurs this week.”
The postponement of the contract signing comes after Usinor’s intense lobbying by the Government and the Privatisation Authority in order for the privatisation process to be relaunched.
Usinor took one of the most final stands a foreign company has ever taken towards the privatisation of a company in Romania. They claimed Sidex being bought by a European company was a much better choice for “Romania’s future,” as well.