FG to seek fresh NITEL bids if sale collapses

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The Federal Government will halt the sale of former state telecoms monopoly, NITEL, and start afresh if a probe of the top two bidders finds them unable to pay their promised offer price, the privatisation agency said on Thursday. 

Acting President Goodluck Jonathan set up a panel, last week, to investigate the two prospective buyers amid doubts about the financial backers for a $2.5 billion preferred bid approved by the Bureau for Public Enterprises (BPE). 

The bid by the New Generation consortium including Unicom, China's second biggest carrier, little-known Dubai company Minerva, and a small local firm, valued NITEL at more than five times what industry analysts said it was worth.  Doubts over the bid arose when Unicom initially denied any involvement but later said one of its units had shown interest.   

There was further confusion over Minerva, which is meant to be providing much of the financing. Omen International, a consortium registered in the British Virgin Islands which emerged as the reserved bidder with a $956 million offer, is also being investigated by Jonathan's panel. 

BPE spokesman, Joe Anichebe, said the investigation would be completed by the end of the week. "We are dealing with the preferred and reserved bidders and if they fail to pay, we terminate the process and start afresh," Anichebe said.  The Financial Times reported on Thursday that the third bidding consortium Brymedia, whose technical partner is an arm of Telecom New Zealand, was prepared to invest $5 billion in NITEL if the government threw New Generation out of the process.  Anichebe said a fresh bid round would be needed if the top two consortiums were ruled out.

Source: FG to seek fresh NITEL bids if sale collapses