SPF To Sell Stake In KSTL At $.20 Per Share, Rethinks Teksterno Tender.

The State Property Fund announced yesterday that it intends to sell a 1.3% stake in Mittal Steel Kryvy Rig (KSTL: BUY) in four parts. The SPF plans to place 0.33% of KSTL on a stock exchange on October 25, then another 0.32% on November 15, followed by 0.32% on November 29, and the last 0.32 % stake on December 13. The blocks are to be sold at a starting price of $0.20 per share. At the close yesterday the last deal price for KSTL was about $0.77 per share. In related news the SPF also said that it was postponing its plans to sell 25% of Teksterno, a small textile maker, in London. Andriy Gostik: The SPF has been talking about privatizing its remaining 1.74% stake in KSTL for along time, however, in terms of meeting their privatization revenue goals this 1.3% stake is small potatoes. Moreover, the obscenely low starting price certainly raises some red flags. With Teksterno it appears that the SPF may have finally realized that the company had almost no legal chance of being sold abroad, or of drawing any interest if it was.