The Czech Privatisation Ministry has decided to reverse an earlier decision to sell 42% of Crystalex Novy Bor in a privatisation project. The idea to sell a 42% stake in the glass company, as reported…
The Czech Privatisation Ministry has decided to reverse an earlier decision to sell 42% of Crystalex Novy Bor in a privatisation project. The idea to sell a 42% stake in the glass company, as reported in Glass Machinery Plants & Accessories No. 2-96, is not an ideal solution, Minister Jiri Skalicky said. After a cabinet decision on methods of trading shares, which had been designated for health, social and retirement funds, holdings could become concentrated at Crystalex, which would lead to the remaining state-held shares losing their value. A strategy, for dealing with the entire 73% stake, has to be found that would take the Czech National Property Fund (FNM), current shareholders and Crystalex itself into account, he said. Czech Premier Vaclav Klaus said that there was no reason to delay the privatisation any further. He reported that it is time to keep promises and work out a plan to transfer 20% of the firm“s shares to health, social, and pension insurance funds. Mr. Klaus stressed, however, that Crystalex would only be sold to Czech firms. “I don“t want to see Crystalex go off into the world somewhere and want to keep our glass industry under our care at home,” said the Premier. Crystalex has announced that it has submitted a proposal for issuing a preliminary court ruling to ban the firm Cristalex sro Prague from using this commercial name, Crystalex lawyer Jana Bemova said. Cristalex sro appeared on a Czech TV programme in connection with unfair business activities. Petr Pokorny from the Crystalex a.s. press department said that the similar names threw bad light on his company which has nothing in common with Cristalex sro Prague. Bemova said that Crystalex filed a lawsuit asking for protection of its rights and commercial name in April 1995. Both companies are involved in the glass industry. When asked how it was possible that the Commercial Court registered a firm with practically the same name as the renowned glass giant of Novy Bor, Bemova only said that “such things just should not happen”. Crystalex last year had a Czk 2.2 billion turnover and its profit totalled Czk 85 million. Their share capital is worth Czk 930.73 million. The company produces chiefly household glassware, but also fancy glass and glass objets d“art. Two-thirds of production are exported, chiefly to Germany, Italy, Spain, Britain and Australia.