Bulgaria Refuses Again to Return Golden Share to BTC JSC

By keeping the golden share the state will continue participating in the work of BTC JSC, which operates 90% of the landline phones in Bulgaria. File photo

Bulgaria's Ministry of Transport, Information Technology and Communication has again refused to return the golden share the state owns to the joint-stock company BTC.

The Transport Minister, Alexander Tsvetkov, has announced Thursday that he plans to keep the key share until the court decides on the case filed by the communication company for annulment of the state veto in BTC's governing council.

Tsvetanov has suggested Finance Minister, Simeon Djankov, that the government elect a representative in the governing council of the communication company. However, this person cannot be from the Transport Ministry because it is the institution that regulates the policy in this sector.

By keeping the golden share the state will continue participating in the work of BTC JSC, which operates 90% of the landline phones in Bulgaria. In early September, Bulgarian State Telecom, BTC, and the mobile operator Vivatel merged under a new brand - Vivacom.

Originally, the state had to return the golden share to BTC JSC until June 10, 2009.

Under a contract, the golden share that entitles the government to block decisions concerning the activity of the company has to become an ordinary on and to be sold for BGN 1 to the majority owner of the company.

Viva Ventures, a consortium led by Advent International, bought a 65% stake in the Bulgarian Telecommunications Company, BTC, in June 2004 for EUR 280 M plus a EUR 400 M investment program.

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