KRAZ Calls Additional Requirements For LTPL Bidders Unfair

In a press release published last night, AvtoKrAZ (KRAZ: BUY) called on the government and the State Property Fund (SPF) to drop the additional requirements for the companies bidding for Luhanskteplovoz (LTPL: HOLD), which according to the company, “limit the number of participants and favour one bidder.” Olha Pankiv: The additional requirements KRAZ is referring to require the bidders to meet at least one of the following conditions: use locomotives in their business, be able to provide the company’s main inputs or have experience in the production of locomotives. The Yanukovich government has made little secret  of  favouring Russia’s Transmashholding in this tender, and as KRAZ notes, has made it almost impossible for a domestic company to win this tender.