DFDS Tor Lines May Suspend LISCO Deal

In accordance with the recently adopted amendments the Danish company will have to officially offer the minority LISCO shareholders to buy the remaining stock at a price no less than paid for the shares in the state ownership. Kestutis Glaveckas, Chairman of the Lithuanian Seim budget and finance committee, communicated the Government received on June 15 a letter wherein the DFDS Tor Lines management requests the from Government permission to lift the amendments for the LISCO deal as the company intends to independently negotiate the solution with the minority stockholders. The state owned 80% of LISCO, a shipping monopoly operating on the Lithuania - West Europe routes. In accordance with the agreement of April 23, 2001, between the state property Fund and DFDS Tor Lines, 76.36% of this stock was sold for $47.6 million. 20% of the stock remained in the hands of minority shareholders and financial brokers. The latter demand the Danish company buy their shares for the same price the state-owned stock was sold for - $1.2 per share. However, DFDS Tor Lines does not show any intention of doing so. The privatization plan provides for two companies to be established. One of them, Lisco Baltic service, a ferry operator, will own 70% of the LISCO property. DFDS Tor Lines will hold a 76.36% stake in this company, the state will get 3.4%, and minority shareholders - slightly over 20%.