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.