The ministry insists on the entire government block of the communications mammoth, which makes 75%, offered for auction, confirmed Mr. Sharonov. "We'll lose a big bonus, otherwise," he explained.
"We don't now expect Rostelecom severed off Svyazinvest, so the two will appear at the auction in a package," added the deputy minister.
"Will expats be admitted to the auction?" a Novosti reporter asked.
"We intend no limitations for nonresidents," came the reply.
Overseas-based companies however may come against certain behavioral provisos-for instance, contract publicity or a list of compulsory services, added Sharonov. "If we work out the arrangement thoroughly enough, we shall not need whatever limitations for foreign bidders," he remarked.
The government may keep a Svyazinvest gold share. The matter is under debate now, with no decision taken as yet. "It is quite probable-a gold share is one of the means to reduce hazards and threats to Russian defense and security, which Svyazinvest privatization may imply."
Similar information came from Leonid Reiman, Information Technologies and Communications Minister, earlier this week-he, too, said the Russian telecommunications holding would be privatized in the year's second half. His ministry also thinks "the remaining 75% block ought to go in for privatization, while retaining the government mechanism".
Three options are presently under consideration-to sell a 25% block plus one share, or 50% plus one share or, again, 75% plus one share.
The open-end joint-stock company Svyazinvest holds control stock of seven Russian-based interregional electric communication companies, MGTS (Moscow telephony) blocking stock, and other lucrative assets. Its authorized capital makes 19.518 billion rubles in 19,518,000,000 ordinary shares at one ruble nominal (the Central Bank rate for today is R28.01/$1). The company has three holders: the Russian Property Management Agency possesses 50% plus one share, the Russian Federal Property Fund 25% less two shares, and Mustcom Ltd. 25% plus one share.
