Bids due on Friday for 75 pct of Pakistan Steel

ISLAMABAD, Mar 30 (Reuters) Pakistan said it would hold bidding on Friday for a 75 percent stake in Pakistan Steel Mills Corp, the latest firm to be put on the block in a privatisation programme that has been far from smooth.

Two consortiums formed by pre-qualified bidders from Russia, Ukraine, Pakistan, Kuwait, Saudi Arabia and the United Arab Emirates are competing for control of the country's largest and only integrated steel manufacturing plant.

The government has had to abort several recent privatisations.

The biggest of all, the ISLAMABAD, Mar 30 (Reuters) Pakistan said it would hold bidding on Friday for a 75 percent stake in Pakistan Steel Mills Corp, the latest firm to be put on the block in a privatisation programme that has been far from smooth.

Two consortiums formed by pre-qualified bidders from Russia, Ukraine, Pakistan, Kuwait, Saudi Arabia and the United Arab Emirates are competing for control of the country's largest and only integrated steel manufacturing plant.

The government has had to abort several recent privatisations.

The biggest of all, the $2.6 billion sale of a controlling 26 percent stake in Pakistan Telecommunication Co Ltd , was renegotiated after Emirates Telecommunications Corp (ETISALAT) said it needed more time to pay.

Pakistan Steel's plant was built by the Soviet Union, and according to industry officials, it will need significant investment to become more competitive.

One of the consortiums is formed by Russia's Magnitogorsk Iron&Steel Works Open JSC , Saudi Arabia-based Al-Tuwairqi Group of Companies and local firm Arif Habib Securities.

The second consortium is made up ofAl-Jomaih Holdings of Saudi Arabia, the Emirates' government of Ras Al-Khaimah, Kuwait-based Noor Financial Investment Co and Ukraine-based Industrial Union of Donbass.

Both have deposited earnest money of $30 million each, the statement said. A group led by Citigroup Global Markets Ltd.

is advising the government on the sale.

Located some 30 km (19 miles) southeast of the southern port city of Karachi, Pakistan Steel Mills has an annual designed production capacity of 1.1 million tonnes.

It was incorporated as a private limited company in 1968 and commenced full-scale commercial operations in 1984.

REUTERS PR PC2152 .6 billion sale of a controlling 26 percent stake in Pakistan Telecommunication Co Ltd , was renegotiated after Emirates Telecommunications Corp (ETISALAT) said it needed more time to pay.

Pakistan Steel's plant was built by the Soviet Union, and according to industry officials, it will need significant investment to become more competitive.

One of the consortiums is formed by Russia's Magnitogorsk Iron&Steel Works Open JSC , Saudi Arabia-based Al-Tuwairqi Group of Companies and local firm Arif Habib Securities.

The second consortium is made up ofAl-Jomaih Holdings of Saudi Arabia, the Emirates' government of Ras Al-Khaimah, Kuwait-based Noor Financial Investment Co and Ukraine-based Industrial Union of Donbass.

Both have deposited earnest money of million each, the statement said. A group led by Citigroup Global Markets Ltd.

is advising the government on the sale.

Located some 30 km (19 miles) southeast of the southern port city of Karachi, Pakistan Steel Mills has an annual designed production capacity of 1.1 million tonnes.

It was incorporated as a private limited company in 1968 and commenced full-scale commercial operations in 1984.

REUTERS PR PC2152