A-Tec "still wants" Bor copper mines, smelter

An Austrian businessmen who had to pull out of a deal to buy RTB Bor, now says he is "still interested" in the acquisition. Mirko Kovats, who heads A-Tec corporation, last month failed to secure banking guarantees for the sale, and had to withdraw from the deal. A-Tec "still wants" Bor copper mines, smelter Earlier this week, Kovats told Austrian media that he now "plans to offer a different amount of money", without specifying, but added he will "wait to see how elections [in Serbia] go". The A-Tec fiasco was the second of its kind in a year, after the first tender to sell the eastern Serbian copper mines and smelter also failed. In November 2007, A-Tec submitted the winning bid in the second tender, beating SMR, a company owned by Russian metals mogul Oleg Deripaska. Kovats and his consortium offered to buy RTB for USD 466mn, and in February singed a contract with the Serbian government to this effect. But after failing to meet an extended deadline to make the payment, the government terminated the contract and announced it would ask SMR to negotiate. However, Deripaska's company pulled out of the deal, citing significantly changed conditions imposed by the Privatization Agency. The caretaker government has not been able to come up with a clear strategy for the faltering copper giant since. Both the third tender and a search for a strategic partner have been mentioned as options. Reports this week said ThyssenKrupp AG has shown interest in the acquisition, but although outgoing Economy Minister Mladjan Dinkic, G17 Plus was quoted as the source of this news, the German steelmaker was unavailable for comment. Dinkic's assistant at the ministry, Nebojsa Ciric, was cited yesterday as saying that RTB Bor should opt for a strategic partner, adding that this would be done "as in the case of Zastava". But Ciric did not rule out the possibility of another tender. If the state decides to seek a strategic partner, he said, that company will have to demonstrate "financial strength, and have experience managing mines and smelters globally". According to this scenario, the state would hang on to at least 20 percent of RTB's capital for the next ten years, based on the company's debts, while the strategic partner would take on all commercial obligations. Ciric also mentioned ThyssenKrupp, but also the likes of Rio Tinto as "desirable partners". However he went on to say that the decision on whether to seek a partner or go to another tender will be up to the RTB Bor privatization advisers. A view of the Bor mines and RTB smelter (Tanjug)

A-Tec "still wants" Bor copper mines, smelter

Earlier this week, Kovats told Austrian media that he now "plans to offer a different amount of money", without specifying, but added he will "wait to see how elections [in Serbia] go".

The A-Tec fiasco was the second of its kind in a year, after the first tender to sell the eastern Serbian copper mines and smelter also failed.

In November 2007, A-Tec submitted the winning bid in the second tender, beating SMR, a company owned by Russian metals mogul Oleg Deripaska.

Kovats and his consortium offered to buy RTB for USD 466mn, and in February singed a contract with the Serbian government to this effect.

But after failing to meet an extended deadline to make the payment, the government terminated the contract and announced it would ask SMR to negotiate.

However, Deripaska's company pulled out of the deal, citing significantly changed conditions imposed by the Privatization Agency.

The caretaker government has not been able to come up with a clear strategy for the faltering copper giant since. Both the third tender and a search for a strategic partner have been mentioned as options.

Reports this week said ThyssenKrupp AG has shown interest in the acquisition, but although outgoing Economy Minister Mlađan Dinkić, G17 Plus was quoted as the source of this news, the German steelmaker was unavailable for comment.

Dinkić's assistant at the ministry, Nebojša Ćirić, was cited yesterday as saying that RTB Bor should opt for a strategic partner, adding that this would be done "as in the case of Zastava".

But Ćirić did not rule out the possibility of another tender.

If the state decides to seek a strategic partner, he said, that company will have to demonstrate "financial strength, and have experience managing mines and smelters globally".

According to this scenario, the state would hang on to at least 20 percent of RTB's capital for the next ten years, based on the company's debts, while the strategic partner would take on all commercial obligations.

Ćirić also mentioned ThyssenKrupp, but also the likes of Rio Tinto as "desirable partners".

However he went on to say that the decision on whether to seek a partner or go to another tender will be up to the RTB Bor privatization advisers.