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UNION SAYS TOURIST COMPANY'S SMALL SHAREHOLDERS SWINDLED

PULA, Aug 21 (Hina) - Istra Trade Union president Bruno Bulic called a press conference in Pula on Monday in the wake of the announced sale of 35.56 percent of shares of Pula's biggest hotel company Arenaturist to Europa Group, an Italian multinational tourist corporation. The Expandia privatisation investment fund sold the shares at the Zagreb Stock Exchange last week at 21 kuna per share, collecting 16.2 million kuna (US$1.92 million), one fourth of the price at which Expandia had bought them. Bulic said the was sale once again confirmed that small shareholders had been swindled in the privatisation because they had paid the same shares at DM100. The new government has done nothing to audit privatisation, despite pre-electoral promises that it would do so, he asserted. Bulic assessed that despite the unacceptably low price at which the new buyer bought the shares, the sale was
PULA, Aug 21 (Hina) - Istra Trade Union president Bruno Bulic called a press conference in Pula on Monday in the wake of the announced sale of 35.56 percent of shares of Pula's biggest hotel company Arenaturist to Europa Group, an Italian multinational tourist corporation. The Expandia privatisation investment fund sold the shares at the Zagreb Stock Exchange last week at 21 kuna per share, collecting 16.2 million kuna (US$1.92 million), one fourth of the price at which Expandia had bought them. Bulic said the was sale once again confirmed that small shareholders had been swindled in the privatisation because they had paid the same shares at DM100. The new government has done nothing to audit privatisation, despite pre-electoral promises that it would do so, he asserted. Bulic assessed that despite the unacceptably low price at which the new buyer bought the shares, the sale was a good deal from which all Arenaturist employees would benefit because it averted bankruptcy, previously the only solution to the dire state of business and the over-indebtedness. He blamed Arenaturist's uncreative and inept management for the absence of any progress and well-being. He said the management had been well off with manager's contracts and salaries up to 20,000 kuna a month, while the average employee's salary was 2,700 kuna. Bulic believes the new majority owner, specialising in tourism, will be able to recognise and appreciate the company's resources and potentials. Announcements of investments and future development is what Pula's biggest hotel company lacked the most, he said. Before being bought by the Italian corporation, Arenaturist's shares sold at 40-45 kuna, which made the sale at 21 kuna the lowest ever. Arenaturist has 23,963 accommodation units at its disposal, including 7,041 hotel beds and 15,552 in camps. (hina) ha

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