CZECH: Budejovicky Budvar privatisation a step closer? - report

The Czech government has moved Budejovicky Budvar a step nearer privatisation, according to local reports.

Hospodarske Noviny reported today (4 October) that authorities in the country are set to issue a tender for a law firm to look at legally changing Budvar from a state-owned brewer to a joint-stock company. The move pre-empts the step towards privatising the company, the paper said.

Budvar is classed as a 'state enterprise' but must become a joint-stock company in order to be sold. The current government plans to privatise the brewer before the cabinet's term in office ends in 2010, the paper said, without citing sources.

Reports late last month, however, suggested that the government is not looking to privatise Budvar at this time. Mirek Topolanek, the country's prime minister, was cited in local reports last week as saying: "This is no privatisation." Topolanek was also quoted saying that a tender for the adviser for any potential change in Budvar's status would be held this month.

Other reports have also claimed that Anheuser-Busch was set to make a bid, should the sale be confirmed. The US brewer declined to comment on the allegations when contacted by just-drinks last week, although Czech MP Vlastimil Tlusty was cited in a Czech newspaper report as saying: "It is no secret that the prime minister's advisor Marek Dalik has been in talks with the biggest potential bidder Anheuser-Busch."

No-one was available to offer clarification at the Czech Ministry of Agriculture when contacted by just-drinks today.