SERBIA: Knajz sale process to begin again

By just-drinks.com editorial team | 26 November 2004

The privatisation process for Serbia's soft drinks producer Knajz Milos will begin all over again after the Securities Commission ordered that new bids for the company be submitted.

The move comes after a row over the previous bids threatened to bring down the government.

It had appeared this week that a Danone-led bid had won the tender, despite its bid falling short of rivals. But the Securities Commission annulled the Danone bid paving the way for rival bidder FFP Balkan to take the spoils, leading to charges of corruption from both sides.

The Securities Commission today said it had now decided to annul part of the sale of shares in the Knjaz Milos company, citing a "large number of irregularities in the process."

After a emergency meeting of the Serbian government Prime Minister Vojislav Kostunica said: "The government asked the interior ministry and district prosecutor to take up all necessary actions to establish whether there have been any criminal activities in this process."

All parties who entered the initial tender will be able to resubmit bids, the commission said in a statement.

The deadline for new bids is December 6, it added.

Sectors: Soft drinks

Companies: Danone