E-Malt.com News article: Czech Republic: State-owned Budejovicky Budvar is in the middle of political struggle, privatisation is a perspective

Outgoing Czech prime minister and chairman of the Social Democrat Party (CSSD) Jiri Paroubek has accused the Civic Democrats (ODS) of wishing to sell the last state-owned brewery in the country, Budejovicky Budvar, daily Mlada fronta Dnes writed August 29, CTK informed.

Paroubek claims the ODS has been offered CZK40 billion for the brewery based in Ceske Budejovice, southern Bohemia. The ODS has denied the information and claims that Paroubek cannot be trusted, MfD writes.

"They have been offered CZK40 billion. For us, the privatisation of Budvar is unacceptable," Paroubek said in an interview published by the daily August 28.

During a visit to southern Bohemia in May, Paroubek said Budvar will not be sold for as long as his cabinet remains in power. "I do not want to run the risk that it will end up in the hands of Anheuser-Busch," he told the daily at that time.

Leader of the ODS deputies in Parliament and candidate for the post of Finance Minister in the new government Vlastimil Tlusty has denied the accusations. He said he has never considered the sale of Budvar.

Premier designate Mirek Topolanek said on TV on Sunday that his possible interim government would not privatise state-owned stakes in companies for lack of time. However, he admitted that his cabinet could start preparations for some privatisations.

As a matter of fact, in a document drawn up by the ODS leadership and published on Aug 24, the ODS claims that it is Paroubek who is interested in Budvar.

"We could not accept his demand for control over state-owned companies like CEZ, Cepro, Lesy CR, Skodaexport, Ceska posta, and Budvar," the document reads.

Budvar's management declined to comment on the issue. "I know nothing about it," CEO Jiri Bocek told the daily.

Brewer Josef Tolar said he had not heard anything about the ODS wishing to sell Budvar. He admitted, however, that US rival Anheuser-Busch had expressed interest in buying Budvar long ago.

Tolar also questioned the amount of CZK40 billion mentioned by Paroubek. "I should say that no amount is high enough for Budvar but Americans are good at sums, and this is a sum that is too high for them," Tolar told MfD.

South Bohemian governor Jan Zahradnik (ODS) said it would be absurd to sell the brewery because it would threaten ownership of the trademark.


31 August, 2006