For two years of crisis the concluded deals on the Bulgarian Stock Exchange (BSE) and turnover of the regulated market has dropped by about 70%, the statistics show. According to them, in 2010 were concluded just under 110 thousand deals with a total turnover of almost BGN 683 million compared to about 390 thousand deals and BGN 2.13 billion turnover in 2008. The same is the situation in the negotiated deals, listed on the unregulated market, and in 2010 were recorded only 2,575 deals for BGN 237 million. Most deals in the past year were again of Karoll - about 44 thousand, which is about 37% less compared to 2009. The top three is the same as last year and runners-up were Bechnmark Finance and Elana Trading.
Source: Dnevnik (12.01.2011)

With regard to the provisions of Art. 8 of Ordinance #16 of FSC, on 20.01.2011 the following financial instruments may be pledged as collateral for margin trades and short sales and may be sold short: Code Name Avg.trading Value Traded days Avg. number of trades Free float 4CF CB Central Cooperative Bank AD-Sofia 41721.75 20 49.10 20.02
Source: Company information (20.01.2011)

Bulgarian banks' profit falls 21% in 2010 The combined profit of Bulgaria's banking system decreased 21% on the year to BGN 617 million in 2010, data by the Bulgarian National Bank (BNB) showed on Monday. The reason behind the decline was the considerable size of expenses allocated by local financial institutions to cover loan defaults, as well as the decline in their income due to the subdued lending. Impairment costs continued to rise in 2010, reaching BGN 1.317 billion at the end of the year, up by 26.6% compared with 2009. Non-performing loans (loans with more than 90 days delay in payments) came in at BGN 6.4 billion, representing 11.9% of banks' total portfolio at the end of December against 10.61% in September and 6.42% at end-2009. Banks extended loans worth a combined BGN 53.9 billion, up 2.7%, while deposits climbed 3.6% to BGN 63 billion. The sector's total assets stood at BGN 73.7 billion in 2010, BNB said. According to the central bank, local banks were able to cover the higher credit risk and the related additional impairment costs thanks to the income generated from core activities. The country's banking system also managed to maintain the accumulated capital buffers in the last quarter of 2010 and to report adequate financial indicators at the end of the year, the report said. Six banks booked losses in the period, including the local branches of Greek Alpha Bank and Emporiki Bank, Slovenian NLB Banka, Latvian Regional Investment Bank, Turkish Ziraat Bank, as well as Bulgarian-American Credit Bank. Banks to report a rise in earnings were Corporate Commercial Bank, Bulgarian Development Bank, Central Cooperative Bank, Societe Generale Expressbank and Postbank.
Source: Dnevnik (01.02.2011)

Banking system profits decrease by over 20% to BGN 617 mln The profits of the domestic banking system decreased by over 20% last year, according to the Bulgarian National Bank (BNB). Financial institutions in the country ended 2010 with an unaudited profit of BGN 617 mln, or BGN 163 mln down from 2009. According to BNB experts, although lower than the previous year, this is a sort of additional capital protection. Data showed that in a year, depreciation expenditures rose by 26% to BGN 1.31 bn but, nevertheless, revenues from main activities covered the increased risk and costs. At the end of December, non-performing loans overdue for more than 90 days reached 11.9% of the total volume of credits, almost double the level from a year earlier when their share was 6.42%, according to BNB statistics. According to financial institutions’ reports presented by BNB, only two banks in our country ended 2010 with profits exceeding BGN 100 mln – UniCredit Bulbank and DSK Bank, with BGN 158.7 mln and BGN 130.58 mln, respectively. In 2008, three banks reported profits of more than BGN 200 mln, and in 2009, three financial institutions had profits exceeding BGN 100 mln. An interesting shift was observed in the following positions, Corporate Commercial Bank displacing United Bulgarian Bank (UBB) from the third place and achieving a 23% profit growth to BGN 74.4 mln. Let us remind our readers that this financial institution ranked 8th in terms of profits in 2008 and climbed to the 4th position in 2009. Meanwhile, the profit of UBB shrank by 26.5% to BGN 73.6 mln.
Source: Class (01.02.2011)

Standard and Poor's has removed the ratings of Bulgarian American Credit Bank (BACB) after downgrading them to B-/C from B/B. The ratings carried a "negative" outlook prior to the withdrawal, which was requested by the Bulgarian bank. "The rating action reflects our view that BACB faces heightened liquidity risk resulting from fairly tight resources in light of its debt-repayment schedule in 2011," the agency said. The downgrade was also triggered by the deterioration in the bank's asset quality and profitability. By July 2011, BACB has to repay two bonds worth a combined EUR 60 million and it is not certain whether Allied Irish Banks, its 49.99% owner, will restart its interbank credit line, S&P said. BACB was among the six Bulgarian lenders to report a loss in 2010.
Source: Dnevnik (02.02.2011)

Central Cooperative Bank (CCB) has acquired 18% of the capital of a Bulgarian media company. Object of interest is the company Bulgaria On Air Ltd., whose business is the creation and distribution of radio and television programs, maintenance and operation of cable television networks, internal and external trade. Partners in the company are M Sat Cable JSC, Saglasie - Pension Insurance Company JSC, CCB - Sila Pension Insurance JSC, Plovdiv Commodity Exchange, Armeec Insurance Company JSC and CCB, which holds 720 thousand in the capital.
Source: Darik Radio (14.02.2011)

Bulgarian Central Cooperative Bank and several other entities linked to industrial conglomerate Chimimport have become shareholders in local television and radio broadcaster Bulgaria on Air, the successor of Varna-based TV Channel M Sat. The shareholders reshuffle follows the increase of the company's capital to BGN 4 million from BGN 5,000 in late 2010. Prior to the transaction, Bulgaria on Air was fully-owned by MSAT Cable, a company associated with Chimimport's majority shareholders. The cable TV operator now holds a stake of 51.4% in the company. Currently, CCB is the broadcaster's second biggest shareholder with a 18% stake, as the online English edition of Dnevnik Daily reported. Among the other shareholders of Bulgaria on Air are also Saglasie pension fund, CCB-Sila pension fund, Plovdiv Commodity Exchange, insurer Armeets and Bulgarian flag carrier Bulgaria Air. All five companies are controlled directly by Chimimport or by entities linked to the conglomerate.
Source: investor.bg (15.02.2011)

With regard to the provisions of Art. 8 of Ordinance #16 of FSC, on 01.04.2011 the following financial instruments may be pledged as collateral for margin trades and short sales and may be sold short: Code Name Avg.trading Value Traded days Avg. number of trades Free float 4CF CB Central Cooperative Bank AD-Sofia 31812.85 20 42.20 22.34 6C4 Chimimport AD-Sofia 120844.25 20 30.10 17.43
Source: BG Sever-Pleven (01.04.2011)

There are candidates for the 49.99% stake at the Bulgarian American Credit Bank (BACB), currently owned by the Allied Irish Banks. The official confirmation came from BACB itself, the Pari Daily wrote. So far the names of two candidates have been circulating in the press – Expat Capital, owned by former Deputy Prime Minister Nikolay Vasilev, and Central Cooperative Bank (CCB). “We have completed our due diligence and an offer has been submitted”, Vasilev said. BACB refused to comment whether new bidders have appeared. Because of the due diligence procedures BACB will delay publishing of its 2010 audit repot.
Source: Pari (04.04.2011)

With regard to the provisions of Art. 8 of Ordinance #16 of FSC, on 07.04.2011 the following financial instruments may be pledged as collateral for margin trades and short sales and may be sold short: Code Name Avg.trading Value Traded days Avg. number of trades Free float 4CF CB Central Cooperative Bank AD-Sofia 30654.85 20 39.30 22.34
Source: BG Sever-Pleven (07.04.2011)

Troubled Allied Irish Banks (AIB) is still looking for a buyer for its 49.9% holding in Bulgarian-American Credit Bank (BACB) although it had plans to sell the stake by the end of March 2011. Local Central Co-operative Bank (CCB), which was deemed the lender's most likely buyer, has reportedly dropped the negotiations, while financial services firm Expat Capital, the second candidate for BACB, is still awaiting the evaluation of its bid. Furthermore, BACB's sale has lured another investor that has filed a last-minute offer for the bank, according to information obtained by Dnevnik. BACB said that interested investors were still carrying out due diligence, which means that there is a new potential buyer, since the other two investors have already completed the procedure, grounded their offers on the assessments. CCB, part of industrial group Chimimport, left the race for BACB about a month ago, although it had already signed a preliminary contract to acquire the financial entity, three sources told Dnevnik. According to the insiders, the deal fell through as CCB failed to reach a consensus with BACB's second biggest shareholder, Gramercy Emerging Markets Fund. Gramercy, which holds a 29.98% stake, is also examining the option of exiting the financial institution.
Source: Dnevnik (26.04.2011)

Bulgarian Corporate Commercial Bank (CCB) has acquired an 8.24% stake in local fuel distributor Petrol, the lender said in a statement shortly before the start of the Easter holidays. The bank bought nine million shares in Petrol in a repo deal, following a similar share transfer transaction on the over-the-counter market of the Bulgarian Stock Exchange. According to Central Registry data, however, CCB has bought the stake from one of Petrol's owners, Mitko Sabev. The move is the second repo deal struck by Sabev for the last few months after the businessman arranged such a transaction with Central Cooperative Bank between December 2010 and February 2011. In December 2010, the Central Depository published information saying that Central Cooperative Bank had bought over 5% in Petrol from Sabev, who, however, decided in February 2011 to buy back its shares from the bank. The repo deals in February and April were carried out at one and the same price of BGN 1.3 per share.
Source: Dnevnik (27.04.2011)

The profits of Bulgarian banks compensate the losses from the crisis The profits of banks compensate the losses from the height of the financial crisis. During the first three months of the year, they reported a positive financial result of BGN157 mln, compared to the profit of BGN 170 mln for the same period of last year and BGN 271 mln in January-March 2009, according to BNB (Bulgarian National Bank) data. This makes BGN 1.74 mln a day, while only in March the positive financial result was BGN 70 mln. The accumulated capital surplus was BGN 2.9 bn and the total capital adequacy ratio stood at 17.66 %, indicated further the National Bank. In March, the observed downturn trend from the end of the previous year was confirmed. It relates to the decreased growth of classified assets (non-performing loans) since they increased with twofold lower pace than that in the last three months of 2010. The proportion of those with arrears of more than 90 days in terms of gross loans (excluding those extended for credit institutions) rose by 12.93%. The banks allocated another BGN 299 mln for covering the depreciation of assets, whereas in March merely, the projected sum was BGN 85 mln, indicated also the statistical data. The generated financial and operating revenues in the first quarter provided coverage of both asset depreciation and the remaining costs of the banks. As regards the market shares and assets, there is no change in the first Top 5, involving UniCredit Bulbank, DSK Bank, United Bulgarian, Raiffeisenbank (Bulgaria) and Eurobank EFG. In late March, they held 53.9 % of the assets of the bank system. Nevertheless, BNB highlighted the stronger activity of the medium-sized and small banks, which again enhanced their market shares at the expense of the group of the largest institutions.
Source: Class (02.05.2011)

The Ministry of Finance will buy 2, 000 Central Depository AD (CDAD) shares from BNB, it transpires from a central bank statement. The said shares comprise 20% of the Depository’s capital and the Ministry will pay BGN 200, 000 for the acquisition. Once the transfer is complete, Dyankov’s administration will control 41.9% of CDAD (or 44.9% via BSE-Sofia). If we add the Privatization Agency’s 1.8% stake in CDAD, it turns out the state will control a good 46.7% in the Depository. According to late 2009 stats, there is a list of commercial banks with shares in CDAD – Raiffeisenbank, Societe Generale Expressbank, DSK Bank and UniCredit Bulbank (5% each), CCB (5.1%), Eurobank (4.5%), ING Bank (3%), Cibank (1.8%), UBB (1.5%), Investbank (1.4%) and IABank (1.2%), etc.
Source: Standart (13.05.2011)

UniCredit SpA (UCG), Italy's biggest bank and Vienna-based Raiffeisen Bank International AG (RBI) have bought tender documents to broker Bulgaria's 33% stake sale in an E.ON AG unit, Bloomberg agency reported. A total of 14 financial companies have purchased tender documents. Other competitors that will probably submit bids by a May 27 deadline include Greece's second biggest lender EFG Eurobank Ergasias SA (EUROB) and United Bulgarian Bank, a unit of the National Bank of Greece SA, Bulgaria's Privatization Agency told the agency. At the end of last year Bulgaria's government announced it will list in two or three months its 33% minority stake in E.ON, one of the three power distributors in the country, to enliven the local stock exchange and boost revenues. Bulgaria, struggling to cover its widest budget deficit in a decade, plans to sell minority stakes in other energy utilities as well. In 2004, the Balkan country sold 67% in its three power distributors to Germany's E.ON, Austria's EVN and Czech CEZ. E.ON serves households in North-Eastern Bulgaria Heavily criticized for its failure to rake in revenues into the budget by privatization, Bulgaria's government is expected this year to finally go ahead with the planned sale of minority stakes in E.ON-operated electricity distributor. In 2011 Bulgaria's government should finally make its mind about how to restructure the energy holding, which groups the country's top energy assets, analysts have said. Reports say the holding will come to include only the thermal and nuclear power plants, together with the National Electricity Company NEK, after which a minority stake will be listed on the stock exchange.
Source: Dnevnik (13.05.2011)

Business lady Tsvetelina Borislavova now possesses a new bank. Several months after she sold her share in EIBank to the Belgian S‚‘ for 141 million levs, now Mrs Borislavova acquired 49,99% in the Bulgarian American Credit Bank (BACB). Mrs Borislavova entered the bank via the investment company Clever Synergies Investment Fund (CSIF Jsc.) which signed a contract with the owner of BACB - Allied Irish Bank. The deal will become a fact after it is approved by the Bulgarian National Bank and the Commission on Protection of Competition. The owners of the established in 2005 CSIF are Tsvetelina Borislavova and her foundation Credo Bonum. The company mainly invests in green energy, tourism and agriculture. Central Cooperative Bank and Axpat Capital of former minister Nikolay Vassilev also bid for the purchase of BACB. "We will be happy to work together with Mrs Borislavova in the future, " Nikolay Vassilev stated after he learnt from the Standart about the finalization of the deal. Mrs Borislavova is at a seminar in Sarajevo and she will return to Bulgaria on Wednesday, sources from her press-office informed.
Source: Standart (17.05.2011)

Bulgaria picked local First Financial Brokerage House to manage the sale of its 33% stakes in two units of power distributor E.ON Bulgaria, the Privatisation Agency said on Thursday. FFBH outbid Sofia-based Bulbrokers, which ranked second, and local Central Cooperative Bank (CCB), which was placed third, among the nine candidates that had filed binding offers in the tender, the government's asset-selling agency said in a statement. The brokerage contract with FFBH will be signed within two weeks, it added. The financial intermediary should manage the sale of 49,533 shares in E.ON Bulgaria sales and 43,494 shares in E.ON Bulgaria Grid through a public offering on the Bulgarian Stock exchange. Germany's E.ON owns 67% of E.ON Bulgaria, which has one more unit, E.ON Bulgaria Trading. Bulgaria is also seeking managers to sell its 33% stakes in two units each of power distributors CEZ Bulgaria and EVN Bulgaria. (SeeNews)
Source: Dnevnik (10.06.2011)

As many as 12 financial intermediaries have submitted binding offers to manage the sale of the state stakes in the units of power suppliers EVN Bulgaria and CEZ Bulgaria, the Privatisation Agency said on June 16 2011. Of the total, five brokers have applied to run the privatisation of the state's 33 per cent stakes in CEZ Razpredelenie and CEZ Electro, namely First Financial Brokerage House, United Bulgarian Bank, Bulbrokers, Central Cooperative Bank and Capman. The sale of EVN Bulgaria Elektrorazpredelenie and EVN Bulgaria Elektrosnabdyavane has attracted the same firms plus Yug Market and Elana Trading. Potential candidates were required to file their bids by June 16.
Source: Dnevnik (17.06.2011)

The company, which will broker the sale of the state-owned 33% stake in E.ON Bulgaria units, will pocket at least BGN 1.2 M, the sale body announced. First Financial Brokerage House, which was picked in June to broker the sale of the government's stake in E.ON-operated electricity distributor, will earn 0.1% of the value of the sold shares, the Privatization Agency explained on Friday. The contract with First Financial Brokerage House has already been signed. It will expire in a period of 6 months, which means that by the beginning of next year, the sales must be completed. Bulgaria plans to sell the minority stake in E.ON, EVN and CEZ-operated electricity distributors on the Bulgarian Stock Exchange in a bid to enliven the local stock exchange and boost revenues. Each of the units includes two companies in charge of sales and grid operation. Bulgaria, struggling to cover its widest budget deficit in a decade, plans to sell minority stakes in other energy utilities as well. In 2004, the Balkan country sold 67% in its three power distributors to Germany's E.ON, Austria's EVN and Czech CEZ. E.ON serves households in North-Eastern Bulgaria, including the Black Sea city of Varna. Czech power utility CEZ supplies power to over 2 million households and companies in western Bulgaria, while EVN serves the south-eastern parts of the country. Bulbrokers, a local financial and investment company, has been picked to broker Bulgaria's 33% stake sale in Austria's EVN AG unit, while Central Cooperative Bank - the same government's share in Prague-based CEZ AS unit.
Source: Dnevnik (11.07.2011)

Slovenia's life insurer KD Zivljenje Zavarovalnica has offloaded its holding in Bulgarian asset manager KD Pelikan, Central Depositary data shows. On July 12, the Slovenian company transferred its stake of 32.42 per cent in KD Pelikan to funds owned by local investment group Chimimport Invest. Following the transaction, mutual fund CCB Aktiv increased its holding in KD Pelikan to 9.13 per cent from about two per cent, while fund Evropa bought 7.05 per cent of the company's capital. KD Pelikan is controlled by KD Investments, which was taken over by Chimimport-linked investment company Sila Holding in April. In May, pension funds controlled by Chimimport invested more than two million leva in KD Pelikan.
Source: Dnevnik (20.07.2011)

Debt-throttled Bulgarian dairy company Markelli has filed for voluntary bankruptcy. Markelli’s debts total 9.07 million levs, while the company generated a loss of 298,000 levs last year. In its bankruptcy filing, Markelli said unserviced payments to suppliers go as far back as 1998. Markelli, which was set up in 1996, is based in Kazanlak, in southern Bulgaria. (SeeNews)
Source: investor.bg (25.07.2011)

Bulgarian blue chip Central Cooperative Bank (CCB) said on Friday it will seek to raise up to 45 million levs via a new share issue. CCB will issue 30,000,000 new shares with a par value of 1.0 lev each and an issue price of 1.5 levs each, the bank said in a statement filed with the Bulgarian Stock exchange (BSE). The bank’s current share capital stands at 83.2 million levs. The capital hike will be considered successful if at least half of the new shares are subscribed for. (SeeNews)
Source: Dnevnik (25.07.2011)

The Financial Supervision Commission (FSC) has temporarily halted the tender offer of Chimimport’s newly found company Chimsnab Bulgaria. When the tender offer resumes, small shareholders will be able to sell their stocks to the majority shareholder Chimimport via Central Cooperative Bank. The watchdog, however, has not yet provided the motives behind its decision, but that usually occurs when the regulator has some price adjustments in mind.
Source: Darik Radio (24.08.2011)

A ship worth $8 mln to operate on the Varna - Caucasus ferry line The Varna Ferry transport company that transports cargo on the Varna - Caucasus ferry line will borrow a loan of $ 9.2 mln, posted Darik Finance. Navigation Maritime Bulgare (Navibulgare) and Bulgarian River Shipping (BRS) are guarantors of the credit, which will be borrowed from the Central Cooperative Bank. A vessel built in 1995, intended to serve the ferry line, will be purchased with $ 8 mln of the loan. Varna Ferry is a company set up earlier this year by BRS and Navibulgare with a capital of BGN100,000. “The ferryboat connection Varna - Caucasus shortens the distance between Bulgaria and Russia with about 800 km, compared to the Varna - Ilichovsk ferry line, which is a significant advantage for businesses,” explained officials from the Executive Agency Maritime Administration. This will reduce the time for delivery of goods by 40%.
Source: Class (20.09.2011)

An application to declare Alma Tour Fly, part of the failed Alma Tour group, has been lodged at the Sofia City Court, Bulgarian National Television said on October 7 2011. Alma Tour hit the headlines in summer 2011 when Bulgaria Air refused to carry passengers whose tickets had been bought through the travel group because the tour company owed the airline several million leva in debt in arrears. This disrupted the return home of many Russian, Finnish and other foreign tourists. Bulgarians holidaying in Greece and elsewhere who had bought their excursions through Alma Tour also were stranded. Special steps were taken by Bulgaria's Government, insurers and other travel industry players to get the holidaymakers home. Meanwhile, UniCredit Bulbank and Central Co-operative Bank have initiated legal procedures to recover 13 million euro in loans from Alma Tour. The company suspended its operations some weeks ago and temporary management has been appointed to draw up a plan to deal with Alma Tour's debts.
Source: Darik Radio (10.10.2011)

As many as five Bulgarian banks accounted for two thirds of the overall profit of the country's banking system in the first nine months of 2011, Bulgarian National Bank (BNB) data showed. Bulgarian banks' combined profit stood at 484.5 million leva in January-September, with UniCredit Bulbank, DSK Bank, Raiffeisenbank, Piraeus Bank and Corporate Commercial Bank accounting for 371.6 million leva of the total. A total of nine banks suffered losses in the period. The eight banks that recorded negative results in the second quarter were joined by the domestic branch of Turkey's Isbank, which started operations in the country in the summer. The remaining financial institutions to register losses in the period were Investbank (6.8 million leva), Bulgarian American Credit Bank (16.5 million leva), Regional Investment Bank (349 000 leva), NLB Banka Sofia (3.7 million leva), Ziraat Bank (227 000 leva), Emporiki Bank (5.976 million leva), Teximbank (1.4 million leva) and Alfa Bank, Sofia branch (30.4 million leva). The branch of Greece's Alpha Bank has been reporting losses for several consecutive years. Originally, the negative result was attributed to the bank's robust network expansion and consequently to its foray in the retail banking business and the effects of the financial crisis. Emporiki Bank, part of French banking group Credit Agricole, as well as NLB Banka Sofia and Regional Investment Bank, have also been reporting negative figures since their entry on the Bulgarian market. Investbank, which registered a loss for a third quarter in a row, has managed to keep the result almost unchanged compared to the previous three-month period. BACB, however, saw its net loss widen by about two million leva on 2010. Twelve banks reported a rise in earnings with some of the entities enjoying significant annual growth. MKB Unionbank and ProCredit Bank, for example, boosted their bottom lines by nearly three times to 4.9 million leva and seven million leva, respectively. The profit of Allianz Bank surged more than 10 times in January-September to 9.8 million leva compared to the year-earlier period. Societe Generale Expressbank reported an increase in net profit of almost 90 per cent to 38.6 million leva. The lower income of domestic banks, stemming from tight lending and rising costs for bad loan provisions, are the main reasons behind the low profits or losses of domestic banks. However, the number of banks to record losses has remained relatively stable in the past three years and the banking system as a whole has been profitable.
Source: Darik Radio (03.11.2011)

The Russian state Holding MRSK wants to acquire a stake in E. ON subsidiaries in Bulgaria The Russia-based Holding MRSK OAO (OJSC) expressed an interest in purchasing the 33% share in the state electricity distribution companies (EDCs) in the cities of Varna and Gorna Oryahovitsa, reported the news agency LiveBiz, citing its own sources. The majority stake in the EDCs is held by E. ON Bulgaria, while the state's stake is due to be listed on the Bulgarian Stock Exchange. First Financial Brokerage House was selected to act as investment intermediary for the transaction. The Russian company has already purchased the tender documents but the sale of shares will be implemented ??on a lot-by-lot basis and there might be several final owners. The Czech company CEZ and the state-owned NEK (National Electricity Company) are expected to express interest in the purchase of shares, as well as other foreign companies operating outside Bulgaria. CEZ is the majority owner of the electricity network in Western Bulgaria and of TTP (Thermal Power Plant) Varna. The state plans to sell its shares in the EDCs of CEZ and EVN as well. Central Cooperative Bank and Bulbrokers were selected to act as investment intermediaries for the sale.
Source: Class (23.11.2011)

Russian IDGC Holding interested in acquiring all of the assets of E. ON in Bulgaria Russian state-owned IDGC (MRSK) Holding JSC will participate in the bidding on the Bulgarian Stock Exchange for the acquisition of a 33% stake in the Electricity Distribution Company (EDC) in north-eastern Bulgaria, owned by German E. ON, posted the Russian Kommersant newspaper. The company intends to buy the tender documentation. Its chances are quite good because the state-owned shares will be offered in separate lots and bought by those who offer the highest price. However, there is no guarantee that a single buyer will be able to get the whole package of 33% because it is possible that another candidate will offer a higher price in a single lot. Representatives of the state- owned IDGC Holding, which brings together the distribution networks in Russia, and of German E. ON, declined to comment for the newspaper. The publication, however, reminded that, some time ago, Director General of IDGC Holding Nikolay Shvets, stated that the company would like to manage an electricity infrastructure abroad, preferably in Europe. “Furthermore, besides the State, which is preparing to list its 33% stake for privatisation on the stock exchange, the E. ON company also intends to sell its assets and has already drafted an information memorandum for potential investors,” posted the publication. The memorandum noted that E. ON was considering withdrawing from the Bulgarian energy sector and transferring complete control of its subsidiary company to another owner. Sources of Kommersant maintain that the IDGC Holding has already sent a non-binding offer for the purchase of the respective assets from E. ON and that the company intends to submit a binding offer today - November 24. The newspaper noted that the market share of E. ON Bulgaria is 18% and it is lower than the share of the two other market players - Czech CEZ and Austrian EVN. Head of Energy Development Fund of Russia Sergey Pankin told the newspaper that the deal for the acquisition of shares in the Bulgarian EDC could only be a result of "a political order on the part of the State." The Bulgarian State intends to sell its shares in the E. ON Bulgaria company. This will be the first, out of the 3 packages in EDCs, planned to be offered for privatisation via the stock exchange.
Source: Class (24.11.2011)

Bulgaria's Central Cooperative Bank (CCB) plans to start operations in the UK and the Russian republic of Tatarstan, Capital Daily said on December 5 2011, citing data in Bulgarian National Bank's report for the first half of the year. BNB has already given CCB approval to acquire a controlling stake in TatInvestbank, which is based in Tatarstan's capital Kazan. The deal is now pending clearance by Russia's central bank. In addition, CCB has notified BNB about its plans to start offering banking services in the UK. According to European regulations, banks in member states have the right to open branches and provide services throughout the EU without a particular licence. In its report, BNB stated that CCB was the first Bulgarian bank to make use of this opportunity. CCB declined to comment when contacted by Capital Daily. BNB noted, however, that CCB's intention to enter the UK market did not necessarily mean that this would happen in the short term, saying that that a total 191 EU financial institutions had informed the central bank about plans to enter Bulgaria. Among these lenders are HSBC, UBS, Royal Bank of Scotland, Credit Suisse, but none of these have so far opened a branch or representative office in the country.
Source: Capital (05.12.2011)