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Remaining Bidder For Romania’s CFR Marfa May Be Disqualified Over Demands – Minister

Publicat: 20/06/2013, 16:18

Romanian rail company Grup Feroviar Roman (GFR), the only remaining bidder in the privatization process of state-run freight rail carrier CFR Marfa, may be disqualified due to a series of conditions attached to its purchase offer, Romanian Transport Minister Relu Fenechiu said Thursday.

Unless GFR gives up its demands, we will terminate negotiations and the investor will be disqualified,” Fenechiu told a news brief after the opening of GFR”s bid.

Fenechiu declined to say what GFR”s demands were or how much the company is offering for the majority stake in CFR Marfa, but mentioned the amount was above the minimum asking price of 798.05 million lei (around EUR180 million).

„Their offer is higher. We wouldn”t have started negotiations if it were otherwise,” he told reporters.

Romanian privately owned GFR is the only remaining bidder for 51% in CFR Marfa, after US company OmniTRAX was disqualified due to insufficient documents and a consortium comprising Romanian Transferoviar Grup and Austrian Donau-Finanz GmbH & Co KG Austria has withdrew its bid.

CFR Marfa”s privatization is prerequisite for the successful completion of Romania”s EUR3.6 billion loan program with the International Monetary Fund.

The company was supposed to be auctioned by the end of 2012, but the sale was delayed due to poor market conditions and regulatory proceedings. The government hired a consortium comprising US consultancy firm Deloitte, local firm Musat&Asociatii and France”s Systra to advise on the sale.