The freight traffic arm of OEBB, Rail Cargo Austria (RCA), made a first bid to buy Slovakian rail freight traffic, this was confirmed by RCA spokesman Andreas Rinofner. However, tough competition awaits for OEBB. In total 14 Slovakian and international prospective buyers have made offers for ZSSK, said Toma Sarluska, spokesman for the Transport Ministry. The offer period ran out on Friday 6 August.

Up to 514 million euro proceeds expected
Slovakian Transport Minister, Pavol Prokopovic is counting on privatisation earnings of between 15 and 20 billion crowns, equivalent to 385 to 514 million euros from the sale. For the OEBB this would be the largest foreign acquisition in its history. How good the chances of OEBB actually are, the spokesman for the Minister did not want to say on Monday. OEBB also refused to comment for the time being on their offer.

As a result of the takeover, OEBB if successful would rise to position of third biggest rail transport enterprise in Europe. Other European bidders in the competition besides OEBB are German railways (DB), despite their spokesman having announced their withdrawal from the closed-bid auction in April, nevertheless the DB has now made an offer. DB Railway logistics spokesman Gelfo Kroeger did not wish to comment on this on Monday referring to "an ongoing process".

Czech and Hungarian Railways also make offers
In addition Czech Railways CD (Cesky Drahy) have made an offer, British transport business First Group and an investor from the Ukraine have confirmed their interest. Further, according to newspaper reports Hungarian State Railway MAV, along with Slovakian banking syndicate Penta - and an unspecified foreign investor - and the US investment group Rail World have made offers.

The Transport Ministry now wants to appoint a privatisation advisor CA IB Financial Advisors in the next few weeks to provide a short list of those bids, which can then subjected to a more detailed examination of their business case including Due Diligence. Decisive in the final selection will be the highest bid as well as the financial power of the bidder and its investment strategy, it was said.

Up to year end
Bids can be made up until 30 September then the selected bidders will have to make a final requirement, which they must deliver before the year end. Afterwards the Slovakian government will select the best bidder.

Cargo Slovakia was split from Slovakian state railways at the beginning of the year. In the first quarter of 2005 the business made a stated profit of 423 million crowns (10.86 million euros). With 50 million tons of freight transported in 2004, rail holds a market share of approximately 20 per cent of the entire goods traffic in Slovakia. The business has 800 locomotives and 16,000 railroad cars. (APA)