SPF Insists On Legality of Luhanskteplovoz Privatization

State Property Fund Head Valentyna Semeniuk released a statement insisting on the legality of the March 23 privatization of a 76% stake in Luhanskteplovoz (LTPL: BUY) to Bryansk Heavy Machinery (BRMU RU), which is part of Russia’s Transmashholding, after the Prosecutor General’s Office of Ukraine filed a lawsuit yesterday claiming the controversial privatization was illegal. Inna Perepelytsya: One of the main reasons for the court appeal is that there was not true competition since the two bidders, Bryansk Heavy Machinery and Demikhovski Machine Building, are both affiliated with Transmashholding. In reality, since September 2006 none of these companies have been officially affiliated. We chalk this noise up to pre-election jostling between political parties and believe it is highly unlikely Luhanskteplovoz will be reprivatized.