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Ukraine holds auction of steel group
10/24/2005
KIEV, Oct 23 (AFP): Ukraine holds Monday a repeat auction of the giant state-owned steel mill Kryvorizhstal in what investors see as a crucial test of the government's ability to fight corruption and embrace the free market.
The three competitors in the biggest privatisation since Ukraine won independence from the Soviet Union are top world steel maker Mittal, the Industrial Group consortium combining French giant Arcelor and Ukraine's Donbass, and LCC Smart Group, reportedly controlled by Russian businessman Vadim Novinsky.
The repeat auction follows a court ruling that annulled the result of a sale made last year under Yushchenko's predecessor, president Leonid Kuchma, in which the giant mill was sold for just 800 million dollars to a consortium owned by Kuchma's political allies, ignoring several higher bids.
This time, the government has set a minimum two-billion dollar price for the 93-per cent stake and is promising maximum transparency.
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