Two bidders vying for Indosat

Two bidders vying for Indosat

Dow Jones, Jakarta

The government Friday received only two final bids for its 41.94 percent stake in Indonesian Satellite Corp. (Indosat), sources told Dow Jones Newswires.

The two are Singapore Technologies Telemedia Pte. Ltd. and Telekom Malaysia Bhd., the sources said.

The two other bidders, Malaysian company Desa Mahir Sdn. Bhd. and Gilbert Global Equity Capital Asia Ltd., failed to submit their final offers, which were due at 0100 GMT (8 a.m. Jakarta time) Friday.

Sources close to ST Telemedia said the Singapore company set a price above Rp 12,000 (US$1.35) a share.

Indosat shares closed Friday down Rp 100 at Rp 8,600.

The government had previously expressed its hope that the bidders would offer Rp 12,000 or more a share.

In May, the government sold an 8.1 percent stake in Indosat priced at Rp 12,000, raising Rp 1.1 trillion.

The government has said it will announce the winning bid for the Indosat stake Monday.

The government is trying to sell stakes in state-owned companies to cover its budget shortfall in 2002. But the privatization program has been criticized by some quarters including employees of state enterprises who fear that new owners would launch massive job cuts.

Another concern has been the relatively low price obtained by the government in the sale of the state assets.