In Brief - 2003-08-07

Latvijas Balzams slammed south of border
The public tender commission rejected a bid filed by the consortium of the biggest Baltic distillery, Latvijas Balzams, in a public tender on the sell-off of the key Lithuania's vodka producer, Stumbras, state officials have confirmed.
The consortium reportedly offered 158 million litas (45.8 million euros) for a holding in Stumbras, but the State Property Fund rejected the bid – the highest out of five – on grounds of unreliable information about the potential buyer.
The second highest price for a stake in the lucrative distillery, at 152 million litas, was offered by the Lithuania's alcohol wholesaler Mineraliniai Vandenys, which is owned by the MG Baltic concern.
The initial price of a 91.95 percent stake in Stumbras has been pegged at 107 million litas, or 3.92 litas per share. The 50 percent premium offered by the highest bidder demonstrates the potential profitability of Stumbras and the alcohol industry in general.
Stumbras is quoted on the Current List of Lithuania's stock exchange. On Aug. 1 the stock closed at 5.45 litas, bringing the company's market capitalization to 161.6 million litas. (Baltic News Service)

Mobile operator reaping profits
Lithuanian mobile operator Bite GSM, which is owned by the Danish telecommunication company TDC, posted first-half revenues of 192.6 million litas (55.8 million euros), an increase of 24.5 percent over the first half of 2002.
Earnings before interest, tax, depreciation and amortization reached 45.4 million litas, soaring by 65.7 percent from the first half of 2002, company's management said at the press conference.
Bite aims to lift full-year sales by nearly 14 percent to over 400 million litas, Darius Masionis, Bite CEO, said.
As of the end of June the number of subscribers to services offered by the company rose by 29.5 percent year-on-year to 479,000 users.
The domestic fixed-line market rose by 1.8 percent, year-on-year, to 950.2 million litas in the first quarter of 2003, Bite reported. "[Landline] growth has been sluggish, whereas the mobile market expands at the expense of fixed telephony," Masionis said. (BNS)

New terminal for Schengen citizens
Riga International Airport said it planned to build a new terminal allowing to cater for separate passenger control of Schengen Treaty countries and other foreigners after Latvia joins the EU.
The airport reported that construction on the new northern terminal was expected to start early next year and should be ready for work in early 2005. The northern terminal is expected to be on three floors, with the first two for handling passengers and the third floor to be occupied by airBaltic airlines. The northern terminal is expected to house intensified border control, customs and security facilities, as it will be used for controlling arrivals and departures to and from non-Schengen countries.
The airport reported that after the Baltic state's EU accession the airport would have to separate passenger control for Schengen Treaty countries and other foreign nationals.
The airport did not name any specific costs for the terminal. (BNS)