TALLINN -- Estonia's Ministry of Economyand Communications is studying which state-owned companiesand at which conditions could be privatized, the daily EestiPaevaleht claims.
Under scrutiny are five companies -- Eesti Post, EestiEnergia, Eesti Raudtee (Estonian Railway), Tallinna Sadam(Port of Tallinn) and Tallinna Lennujaam (Tallinn Airport),the ministry's PR adviser Gea Otsa said.
"The objective is not to fill the state treasury but tofind out what benefits involving private capital could havefor the development of the companies," Otsa said.
The ministry is trying to establish whether to sell thecompanies at all and if yes, which parts of them to sell.Under consideration are both a scheme of privatizing throughthe stock exchange and a direct placement of shares.
"In the case of the railway only sale of the carriage operations can be considered. The tracks will definitelyremain in state hands," Otsa explained, adding that thestate wants to retain a certain degree of control in all ofthe companies.
The analysis will be ready in August and then theminister of economy and communications, Juhan Parts, willform his opinion. Otsa believes the final proposals willprobably not be put before the Cabinet until September, thepaper said.
Even in the current economic climate, a sale of what would immediately become Estonia's blue chip companies would be of huge interest to international investors. Much attention will focus on what regulations might be drawn up to restrict foreign - and particularly Russian - ownership of national assets.
