Intereuropa News

Slovenian shipping firm Intereuropa and port operator Luka Koper canceled a planned merger because the government was demanding the right to veto any management decisions in the new firm. The two companies had planned to merge on July 1. The state owns 51 percent of Luka, while Intereuropa is privately owned. The state's equity in the new company would have been 35.7 percent. "There will be no merger under such conditions where the government would have the right to veto practically every management decision," Radovan Vrabec, Intereuropa's deputy chief executive, said. He said the two companies would be ready to continue merger talks if the government eased its demands. Vrabec said the two firms would not suffer short-term damage due to the failure of the merger.

Slovenian shipping firm Intereuropa and port operator Luka Koper canceled a planned merger because the government demanded the right to veto any management decisions in the new firm. The two companies had planned to merge on July 1. The state owns 51 percent of Luka, while Intereuropa is privately owned. The state's equity in the new company would have been 35.7 percent. Officials said the two companies would be ready to continue merger talks if the government eased its demands.

Slovenia's largest shipping firm Intereuropa is relaunching a bid to merge with the country's only port operator Luka Koper following last October's change of government. The two companies first planned to merge last year but called off the deal in April because the-then government was demanding the right to veto management decisions in the new firm. The Slovenian government owns 51 percent of Luka. "Slovenia is getting closer to membership of the European Union and we believe the present government will support the merger," said Radovan Vrabec, deputy director of Intereuropa. He said the merger, which Intereuropa hoped to complete this year, would enable the two companies to expand their logistics network and improve competitiveness ahead of joining the EU.

Slovenian shipping firm Intereuropa fell over four percent by midday trade on Wednesday amid fears that the government may not approve its proposed merger with port operator Luka Koper. At one point during the day, shares of Intereuropa were down 4.58 percent at 2,480 tolars ($13.03) on volume of 5,526 shares, although the company earlier in the morning reported a 24 percent in group nine-month net profit. Traders said there was no explanation for the drop other than the possibility that some believe the merger with Luka Koper will not happen. The government debated the merger on Tuesday in a session closed to media. A decision is expected by the end of the month.

The merger between Slovenia's port operator Luka Koper and shipping firm Intereuropa is expected to take place on July 1, according to Luka Koper officials. The new firm will be called Globalni Logisticni Servis (GLS). Most issues related to the planned merger were resolved at a recent meeting of Luka and Intereuropa with government representatives, officials said. The issues included transfer of the state's shares in Luka to GLS and lease of state-owned land used by Luka. The state would have a 35.7 percent stake in GLS, compared with 51 percent now. The final decision on the merger will be made at shareholders' meetings of both companies, probably in April.