Date: 06 Mar 2000
Time: 13:16:38
Remote Name: 156.29.145.175
3/06/2000 Dow Jones International News (Copyright (c) 2000, Dow Jones & Company, Inc.)
TEHRAN -(Dow Jones)- Italian automotive company Fiat SpA (FIA) is competing with other Iranian private-sector bidders to acquire about 85% of the shares of the Iranian automobile manufacturer Pars-Khodro, Iranian newspapers reported Monday.
The government is spinning off the whole block for investors, and it is hoping to secure a deal Monday.
Fiat announced its intent to buy the Khodro stake when the Industrial Development and Renovation Organization, affiliated with the Iranian Industries Ministry, decided to privatize the country's third biggest car maker.
Pars Khodro is reportedly the last Iranian automotive company whose shares are being put up for sale by IDRO.
Fiat's biggest competition in the tender is Astan Qods Razavi, the most affluent Iranian religious organization, based in the northeastern province of Khorassan.
The Persian daily IRAN said the base value of the 85% of Pars Khodro shares put forth as a block is 433 billion rials ($1=IRR3,000), or IRR5,100 a share.
According to the Iranian press reports, representatives of the Italian firm accompanied Lamberto Dini, the Italian foreign minister, in his official visit to Iran which began Sunday.
The IRAN newspaper quoted an IDRO official as saying the bid price rose to IRR7,930 a share, or IRR670 billion for the entire 85% stake.
Pars Khodro makes a range of popular 4-wheel drive cars licensed from Japan and France.