Five offers for ETI

While the Italian Treasury has banked a dividend of €46.9m from Ente Tobacchi Italiani, the procedure for the privatisation of the tobacco group continues. Five preliminary offers have been presented: British American Tobacco together with Swedish Match, Altadis-Equinox, Japan Tobacco Imprenditori Associati and Aurelia. The Dutch group TNT and FIT have withdrawn. The bids are being examined by the Treasury and its advisors Goldman Sachs and Grimaldi Clifford Chance. The data room will be opened in January. ETI posted pre-tax profits for 2002 of €92m, compared with €47m in the previous year. Earnings fell by 18 per cent to €677m, mainly due to new cigarette contracts with Philip Morris which accounts for 40 per cent of ETI production.