Czech Republic: Government to hire consultants in selling Budvar
The Czech cabinet plans to hire top lawyers to advise the state on a tricky first step towards privatizing Budvar, the last major Czech brewery in state hands, EUX reported May 7.
The legal advisers will counsel the state on how to convert the brewery to a joint-stock company, Euro business weekly reported.
"The process of transformation has to be guaranteed by the best law firm, preferably with a global reputation, which is capable of providing relevant guarantees," Euro cited Czech Agriculture Minister Petr Gandalovic as saying.
Although the communist regime fell 17 years ago, Budvar has formally remained a national enterprise.
The conversion of Budvar's ownership form has not yet taken place because of the brewery's century-long, worldwide trademark legal battle with the American giant brewer Anheuser-Busch.
If badly conducted, the cabinet fears, the tricky exercise could lower Budvar's value now estimated between 20 to 30 billion koruny (932 million to 1.4 billion dollars). Budvar's trademarks make up a sizeable portion of company's worth.
As of April, Budvar put the number of trademark disputes to be decided in courts at 17, the report said.
In January the two rivals struck a deal in which Anheuser-Busch, which is seen as an important bidder in any future privatization, is to distribute Budvar's lager across the United States under the Czechvar brand name.
In addition to Budvar, the center-right Czech coalition plans to raise budget revenues in coming years by selling or leasing the Prague airport.
This year, the government agreed to shed 7 per cent in the state- controlled power giant CEZ to patch a budget hole. The shareholders, dominated by the state, already allowed the power company to buy back up to 10 per cent of its shares.
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