Govt to select bidders for Indosat

Govt to select bidders for Indosat

JAKARTA: The Indonesian government will decide later Wednesday
which investors will qualify to bid for a 41.94 percent stake in
international call service provider PT Indonesian Satellite Corp.
(Indosat).

A government official told Dow Jones Newswires that 16 local
and foreign investors have submitted letters to the government
indicating their interest in buying the stake.

They are the Government of Singapore Investment Corp., AIG
Investment of the U.S., GE Capital, Newbridge Capital, Batavia
Investment Fund, PT Sarijaya Securities, Hi-Tech Securities,
Australia's Telstra Corp., Singapore Technologies Telemedia Pte.
Ltd., Telekom Malaysia Bhd., the Singapore unit of Norway's
Telenor ASA., Malaysia's Maxis Communications Bhd., Orange SA of
France, Thailand's Advanced Info Service PCL, China Mobile (Hong
Kong) Ltd., and Milbank, Tweed, Hadley & McCloy, said the
official who declined to be named.

He said the investors that will be allowed to bid must have
more than $450 million in total assets and aren't
telecommunication operators based in Indonesia.

"Only qualified investors will be invited to submit their bids
for the stake," the official said.

The government currently has a 56.9 percent stake in Indosat.
The sale is part of the efforts to raise funds to help finance a
deficit in the state budget, which is expected to be around 2.5
percent of gross domestic product this year. --Dow Jones

Taiwan to sell 30% stake in China Airlines

TAIPEI: Taiwan plans to sell up to 30 percent of China
Airlines (CAL) by the end of the year to speed up privatization
of the island's leading carrier, it was reported Wednesday.

The China Aviation Development Foundation (CADF), which has a
controlling 72 percent stake in CAL, hopes to accelerate auctions
of CAL shares, the Economic Daily News cited the foundation
chairman Lin Ling-san as saying.

CADF hopes to sell the stake to other domestic or
international airlines, or companies with strong management
teams, the paper said.

Two foreign holding companies, Salomon Smith Barney and China
Development Financial Holding Corp., have voiced interest in the
carrier, it added.

CAL plans to buy more than a dozen airplanes to upgrade its
fleet but it has not yet placed an order.

It is speeding up its fleet replacement plans after one of its
Boeing 747-200 passenger jets disintegrated in mid-air over the
Taiwan Strait on May 25, killing all 225 people aboard.
--AFP

Nissan to take 50% in new Chinese car firm

TOKYO: Japan's Nissan Motor Co. Ltd. will pay US$1 billion for
a 50 percent stake in a new Chinese car firm to be created from
the core assets of Dong Feng Automobile Co. Ltd., an informed
source said Wednesday.

Japan's number three automaker will join rival Toyota Motor
Corp. -- which announced a joint venture with Chinese counterpart
First Automotive Works last month -- in China's booming auto
market.

A Nissan spokesperson confirmed an announcement on the tie-up,
which has been under discussion for several months, would take
place on Thursday.

"The president of Nissan, Carlos Ghosn, and the chairman of
Dong Feng will make an announcement in Beijing," spokesman Gerry
Spahn told AFP.

Nissan's 8.55 billion yuan ($1 billion) investment is a little
more than three times the profit expected by Dong Feng in 2002.

Dong Feng is one of China's top three automakers, producing
150,000 lorries, buses and light utility vehicles last year, as
well as some 60,000 cars. --AFP