Slovenia Business Week no. 10, March 12th, 2007
Table of Contents:
HEADLINES ................................................................................................................. 3
Slovenian Economy Expands by 5.2% in 2006 .......................................................... 3
New Twingo Hits Assembly Line at Revoz ............................................................... 3
Economists, CCIS Satisfied with Appointment of Development Minister ................ 4
INTERNATIONAL COOPERATION .......................................................................... 4
Ministers: Economic Relations Between Slovenia, Hungary Good ........................... 4
EUROPEAN UNION .................................................................................................... 6
Commissioner Says Slovenian EU Presidency Key for Energy Policy ..................... 6
Piebalgs: Slovenia Tasked with Finding Energy Compromise .................................. 6
PM Jansa Believes EU Energy Deal a Marked Success ............................................. 7
LEGISLATION ............................................................................................................. 8
Public-Private Partnership, Railways Acts Enter into Force ...................................... 8
Government Takes Bill on Real Estate Registers Agency from Agenda ................... 8
STATISTICS/FORECASTS........................................................................................ 10
IMAD Estimates Euro Contributed 24 Basis Points to Inflation.............................. 10
Slovenia at Bottom of EU in Terms of Birth Rates .................................................. 10
Survey Highlights Poor Education of Slovenian Entrepreneurs .............................. 11
FINANCE .................................................................................................................... 11
SKB Banka Grows at Double-Digit Rates ............................................................... 11
NLB Group Has Long-Term Plans for Serbian Market, Chairman Says ................. 12
Ljubljana Stock Exchange ........................................................................................ 12
BRANCH INFORMATION ........................................................................................ 14
Vrisk: Cooperatives Have to Take Part in Regional Development .......................... 14
New Minister Says Cooperatives Need To Adapt to Changes ................................. 14
Official: Second Reactor at Krsko Likely (interview).............................................. 15
No Cases of Swine Fever Discovered in Slovenia So Far ........................................ 16
Tourism Official: Results of Survey an Obligation to Improve ............................... 16
COMPANIES .............................................................................................................. 18
Zlata Moneta 2 Moves to Acquire Etra 33 ............................................................... 18
Watchdog Says Emona Obala Acquisition in Line with Rules ................................ 18
SIJ Confirms Anticipated 2006 Results.................................................................... 18
Elan to Miss 2007 Targets Due to Mild Winter ....................................................... 19
Public Broadcaster Boasts a Successful 2006 .......................................................... 19
Telekom Signs Deal on Second Kosovo Mobile Licence ........................................ 19
Cankarjev Dom Finishes 2006 With Profit .............................................................. 20
Droga Kolinska Selling Multiple Brands ................................................................. 20
Rail Operator Turns Loss into Profit in 2006 ........................................................... 21
Ryan Air to Begin Flights to Maribor in June .......................................................... 21
Hribar: Arrival of Ryanair Will Boost Airline Sector .............................................. 22
German Discount Chain Lidl Entering Slovenian Market ....................................... 22
Krka Group Ups Revenues by 21% in 2006............................................................. 23
Orbico Increases Stake in Emona Obala to 95% ...................................................... 23
SLOVENIA IN BRIEF ................................................................................................ 25
SIJ Small Shareholders Say State Has Failed to Keep Promise ............................... 25
Drnovsek and El Baradei Discuss Iran's Nuclear Crisis ........................................... 25
Parliament Confirms Both New Ministers ............................................................... 25
Rehn Calls on Slovenia, Croatia to Solve Open Issues Soon ................................... 25
PM Says Slovenia does not Link Open Issues with Croatia's EU Bid ..................... 25
Central Bank Boss Nominee Fails to Win Vote ....................................................... 25
Slovenia Becomes Member of EUMETSAT ........................................................... 25
HEADLINES
Slovenian Economy Expands by 5.2% in 2006
Slovenia's economy expanded by 5.2% last year, one of the fastest rates of annual
growth in the last decade, fuelled by exports and domestic spending
Slovenia's economy expanded by 5.2% last year, one of the fastest rates of annual
growth in the last decade, fuelled by exports and domestic spending, shows
preliminary data released on Friday, 9 March by the Statistics Office.
According to the office, economic growth in the final quarter of 2006 stood at 5.5%,
the fourth consecutive quarter that the economy expanded at near or above 5%.
The strong fourth quarter followed an even stronger third quarter, when Slovenia's
GDP grew by 5.6%.
The growth for 2006 is the second-fastest rate of economic expansion in Slovenia
since 1995. According to Karmen Hren of the Statistics Office, it is the fastest rate of
growth since 1999, when the Slovenian economy grew by 5.4%.
Domestic spending provided an important boost to growth last year, rising by 5.5%,
data from the Statistics Office shows.
Even more important, though, was the rise in exports, which contributed 6.5
percentage points to economic growth.
The growth in domestic spending was fuelled by a 11.9% increase in gross fixed
capital formations, as investment into buildings and equipment flourished.
"The main reason for the high growth in investment into buildings was the intensive
construction of non-residential structures (office buildings, roads, bridges, etc.)," said
Hren, who is in charge of national accounts at the Statistics Office.
According to her, the spell of warm weather in the autumn and winter months allowed
an extended construction season, which contributed to higher growth.
The construction sector expanded by 11.8% and manufacturing by 7.4% last year to
fuel the economic expansion, she added.
"The manufacturing sector alone contributed 1.6 percentage points to overall growth,"
Hren explained.
Meanwhile, the trade balance was slightly negative, as the growth in imports (10.4%)
slightly exceeded the growth in exports (10%) last year.
The Slovenian gross domestic product at current prices in 2006 stood at EUR
29.741bn, which amounts to EUR 14,811 per person.
Moreover, employment rose by 1.2% in 2006 to amount to stand at 927,000 people in
employment. The biggest growth was recorded in construction (7.4%) and business
services (5.4%).
Meanwhile, the number of employed persons fell by 1.7% in the manufacturing sector
despite the increase in value added.
New Twingo Hits Assembly Line at Revoz
Being the only Renault factory making the new model, the Novo mesto-based
company expects the project will generate 300 new jobs
Slovenian carmaker Revoz has launched the serial production of Renault's new model
of the Twingo city car. Being the only Renault factory making the new model, the
Novo mesto-based company expects the project will generate 300 new jobs.
According to Revoz's spokeswoman Renata Bele, the company currently produces
750 new Twingo and the Clio Storia models every day, with production running in
three shifts. By introducing a full night shift, Revoz plans to increase production to
900 cars a day by May.
With the serial production of the new Twingo coming into full swing in June when
the car is to go on sale in France and Slovenia, Revoz moreover expects it would have
to expand its current working force of 2,700 with an additional 300 workers.
Revoz, since mid-2005 also the only Renault factory making the second generation of
Clios, produced more than 153,000 cars last year and plans to increase its future
yearly the output to around 210,000.
Economists, CCIS Satisfied with Appointment of Development Minister
The CCIS welcomed the government's decision to appoint a development minister
after a one year pause
Several of Slovenia's leading economists as well as the Chamber of Commerce and
Industry of Slovenia (CCIS) have welcomed the appointment of Ziga Turk as the
minister in charge of development on Tuesday, 6 March. They highlighted as Turk's
priority task the implementation of development goals that have already been defined.
Joze P. Damijan, the first development minister appointed under the government of
Prime Minister Janez Jansa, said for STA that Turk's programme was already outlined
in the government's social and economic reform framework presented in 2005.
Janez Sustersic, the head of the Institute for Macroeconomic Analysis and
development (IMAD), believes that Turk is a good choice. He pointed out that the
new minister would need to take on all the areas where reforms have not been carried
out so far.
"Given his technical background, I expect he will first tackle technological
development and higher education reform," Sustarsic explained for STA.
He also pointed out that the minister's agenda should include the completion of the
social reform, the labour market reform, changes in the pension system, and the
speeding up of the privatisation process.
Economist Saso Polanec meanwhile said that the main challenge for Turk will lie in
increasing the influence of his ministry, which has so far failed to meet its role as a
coordinating body and "was treated by the remaining ministers as redundant".
Finally, the CCIS welcomed the government's decision to appoint a development
minister after a one year pause. "It is indeed very important and useful for business to
have a talking partner in the government for development and reform issues," CCIS
said in a statement.
"By appointing a new minister, the government has sent Slovenians the message that
it is serious about continuing with the implementation of reforms presented in
November 2005," CCIS added.
INTERNATIONAL COOPERATION
Ministers: Economic Relations Between Slovenia, Hungary Good
Slovenian Economy Minister Andrej Vizjak met his Hungarian counterpart Janos
Koka
Economic relations between Slovenia and Hungary have been strengthening, although
there is still much potential to be utilised, especially in the fields of energy and
logistics, Economy Minister Andrej Vizjak said in Budapest on Monday, 5 March.
Vizjak's statements come after a meeting with his Hungarian counterpart Janos Koka.
Trade between the countries has been increasing and exceeded EUR 1bn by the end of
2006, which is on the level of the exchange with the Russian Federation, Vizjak told
STA. The growth of Slovenian exports to Hungary last year was especially
encouraging, he added.
Vizjak and Koka also discussed a major potential Hungarian investment in Slovenia the construction of a new passenger terminal in Ljubljana by company TriGranit. It is
expected that the contract will be signed this month, Vizjak said.
He added that this was the first official meeting of economy ministers of the two
countries after Slovenia gained independence in 1991.
Vizjak is accompanied on his visit to Hungary by 25 business executives, who took
part in a Slovenian-Hungarian business conference opened by the economy ministers.
A founding session of a joint business club also took place, Vizjak explained.
EUROPEAN UNION
Commissioner Says Slovenian EU Presidency Key for Energy Policy
The upcoming Slovenian EU presidency will be of key importance for the European
Commission in drafting tangible legislative proposals in the field of energy if EU
leaders agree on the bloc's commitments at the upcoming EU summit
The upcoming Slovenian EU presidency will be of key importance for the European
Commission in drafting tangible legislative proposals in the field of energy if EU
leaders agree on the bloc's commitments at the upcoming EU summit, European
Energy Commissioner Andris Piebalgs told Slovenian media outlets on Thursday, 8
March.
Piebalgs, speaking in Brussels a day before he is due to visit Slovenia, added that this
will make him very dependent on the presiding country as the task would be more
complex than the ones he had tackled so far.
Piebalgs was fairly sure that EU chiefs of state and government would back stronger
commitments at the summit. But even if they do not, the commissioner believes that
the bloc has already achieved a breakthrough in fighting climate change.
The bloc now has to increase the share of renewable energy, he said.
Piebalgs also called on Slovenia and other countries to see the commitments as a
challenge to fulfil their potential and not as a burden.
While admitting that the binding goals - 20% decrease in CO2 emissions by 2020 would be within easier reach of the countries that already posses clean energy
technology, he nevertheless believes that such technology could spread to other
countries as well.
Piebalgs is expected to focus on Slovenia's preparations for its stint as EU president in
the first half of 2008 in talks with his host Economy Minister Andrej Vizjak in
Ljubljana on Friday, 9 March.
The Economy Ministry said that energy policy will be one of the priorities of the
country's presidency, especially regarding the creation of a common internal market
and cooperation with countries of SE Europe.
They are also set to discuss the contents and the goals of the European energy
package, another item on the agenda of the two-day summit.
Piebalgs also touched on nuclear power by saying that it is difficult for the
Commission to present any tangible proposals for as long as EU member states hold
diverging views on the issue.
Piebalgs: Slovenia Tasked with Finding Energy Compromise
Speaking to the press after holding talks with Slovenian Economy Minister Andrej
Vizjak in Ljubljana, Piebalgs added that the country would also need to seek accord
in promoting energy research
Visiting European Energy Commissioner Andris Piebalgs said on Friday, 9 March
that Slovenia would shoulder the burden in seeking a compromise between member
states on regulating the bloc's internal energy market as its holds the EU presidency in
the first half of 2008.
Speaking to the press after holding talks with Slovenian Economy Minister Andrej
Vizjak in Ljubljana on Friday, 9 March, Piebalgs added that the country would also
need to seek accord in promoting energy research.
Moreover, it will have to play a role in pushing ahead with efforts to ensure that 20%
of the bloc's energy comes from renewable sources by 2020, a deal also agreed by EU
leaders.
Vizjak told a press conference on Friday, 9 March that the goal would require
maximum effort.
Vizjak added that energy would be a priority of Slovenia's presidency and expressed
his support for the Commission's plan to push ahead with the liberalisation of EU
energy markets.
He also said strengthening the internal market would be a centrepiece of Slovenia's
stint as EU president.
Piebalgs added that Slovenia would also have to deal with cooperation between
energy regulators and power distributors as well as with the promotion of research
and development of hydrogen technologies.
Vizjak also acquainted Piebalgs with Croatian-Slovenian relations regarding the
jointly-owned Krsko Nuclear Power Plant (NEK).
Slovenia believes Croatia is in violation of the bilateral treaty on NEK as it has failed
to establish a special decommissioning fund and also is not meeting its obligations in
nuclear waste storage.
PM Jansa Believes EU Energy Deal a Marked Success
Prime Minister Janez Jansa said the agreement reached on 9 March by EU leaders
on securing 20% of EU's energy from renewable sources by 2020 is a marked success
Prime Minister Janez Jansa said the agreement reached on Friday, 9 March by EU
leaders on securing 20% of EU's energy from renewable sources by 2020 is a marked
success.
The deal on the binding goals will see the European Commission propose the shares
for individual member states in line with their specifics, said Commission President
Jose Manuel Barroso. The final agreement will come after talks with all member
states, he added.
Slovenia is one of the few EU newcomers that had no major problems with the
proposal on renewable sources, Jansa added.
The commitments for reducing emissions of greenhouse gases will, however,
probably not be met without taking into account nuclear energy, Jansa said after the
summit.
Such a position was also included in the summit's decisions and Slovenia is pleased
with that, since nuclear power presents an important share of the country's energy
production.
If science does not provide us with new technologies regarding renewable sources,
Slovenia might opt for a second reactor at its lone nuclear plant in Krsko, he said. The
final decision on the construction will be taken in 2011 or 2012.
"Nuclear energy is not a renewable source, but is a source that does not emit
greenhouse gases... Without taking it into account, the energy commitments would
likely be impossible to meet," Jansa said.
LEGISLATION
Public-Private Partnership, Railways Acts Enter into Force
The act on public-private partnerships, regulating the aim and principles of private
investment in public projects, and the amendments to the railways act, making the rail
company Slovenske zeleznice a single company again, entered into force on 7 March
The act on public-private partnerships, regulating the aim and principles of private
investment in public projects, and the amendments to the railways act, making the rail
company Slovenske zeleznice a single company again, entered into force on
Wednesday, 7 March.
The act on public-private partnership is applicable to all forms of public-private
partnerships: contractual partnerships, licence agreements and public contracting
relationships.
It obligates all contracting parties to examine the feasibility of public-private
partnership for projects above EUR 5.2m.
The act also sets up a special unit within the Finance Ministry to monitor the projects
and keep the records.
The long-delayed amendments to the railway act meanwhile puts Slovenske Zeleznice
in charge of managing public railway infrastructure besides its role as a railways
operator.
The latter role is being taken away from the Public Agency for Railway Transport,
which will instead be in charge of railway safety and ensuring fair access to railway
infrastructure to railway companies.
Investments in infrastructure will be managed by a new department of the Transport
Ministry.
The amendments also implement several EU directives, which Slovenia should have
done last year.
Government Takes Bill on Real Estate Registers Agency from Agenda
The withdrawal comes after the Supreme Court voiced opposition to merging the land
registry (containing legal information on property) and land cadaster (containing
information on the properties of land)
The government withdrew from the agenda of its Wednesday, 7 March session the
draft bill on the agency for real estate registers, after encountering strong opposition
from the Supreme Court.
The withdrawal comes after the Supreme Court voiced opposition to merging the land
registry (containing legal information on property) and land cadaster (containing
information on the properties of land), Public Administration Minister Gregor Virant
told the press.
The bill has been taken off the agenda, Virant said. He explained that the government
now expected the court to simplify administrative procedures.
According to the Supreme Court's information, registration procedures now take on
average almost months. Virant said that the aim was to shorten the procedures, so they
would take just hours or even minutes.
He explained that the ministry would try to link both registers: it will draw up changes
to the land registry act that would allow the flow of information between the two
registries, enabling services following the one-stop-shop principle.
If this does not give the results that we want, that is good service and rational
solutions, the government will return to the original proposal, that is institutionally
merging the land registry and land cadaster, Virant added.
STATISTICS/FORECASTS
IMAD Estimates Euro Contributed 24 Basis Points to Inflation
However, inflation remained stable
The Institute for Macroeconomic Analysis and Development (IMAD), a government
think-tank, estimates that the adoption of the euro contributed 0.24% to inflation this
year, mostly due to increasing prices of services. However, inflation remained stable.
"The euro changeover did not affect the overall level of prices. It had an impact on
individual groups of prices, in particular catering services," Bostjan Vasle, the head of
the IMAD's department for macroeconomic analysis and economic policy, told the
press on Tuesday, 6 March.
According to Vasle, the contribution of the euro to inflation is comparable to the most
successful countries which had adopted the single European currency before.
However, the final figure is still a few months away.
Slovenia posted negative inflation in January (-0.1%) and February (-0.2%) mostly
due to seasonal factors. This pushed the annual inflation rate down from 2.8% in
December to 2.1% in February.
The IMAD generally registered better economic circumstances than had been
projected for the final months of 2006. It had been expected that the economy would
cool down towards the end of the year and exports slide, but that did not materialise,
IMAD director Janez Sustersic said.
What is more, the latest data on trends in the EU are more upbeat than expected, as
Slovenia's main trading partners (Germany, France and Italy) saw domestic as well as
foreign demand expand.
"The accelerated economic growth in the EU is underpinned by domestic and foreign
demand. This provides the basis for expectations that the trend will continue,"
Sustersic said.
There is more good news on the labour market front, according to the IMAD. Job
creation outpaced expectations and the number of jobs grew by 1.4%. Meanwhile, the
Labour Force Survey-based unemployment slid to a record low of 6%.
The number of registered unemployed persons with higher education expanded by
7.6%, as did the number of those over 50 (+4.2%), but Vasle said that the government
had already "taken certain measures" as part of the economic reform package.
Slovenia at Bottom of EU in Terms of Birth Rates
With 1.26 children born per woman Slovenia is among the countries with the lowest
birth rates in the EU
With 1.26 children born per woman Slovenia is among the countries with the lowest
birth rates in the EU, according to data released by Eurostat ahead of 8 March,
International Women's Day.
Poland (1.24) and Slovakia (1.25) are the only countries in the EU with lower birth
rates than Slovenia, whereas the EU average, including Bulgaria and Romania, stood
at 1.51 in 2005. France tops the list with 1.92 children per woman.
Women in Slovenia live 81.3 years on average, which is 7.2 years longer than men.
The EU average stands at 81.5 and 75.4, respectively.
Slovenian women are usually also better educated than men. In the second quarter of
2006, 25.5% of women in Slovenia aged between 25 and 59 had a higher-education
degree, whereas the share among men stood at 18.8%.
On the other hand, Slovenian women lag behind in computer skills, with as many as
47% of those aged between 16 and 74 being completely unfamiliar even with
computer basics.
The EU average of both men and women with higher-education degree ranges
between 23 and 24%, with Finland standing out in terms of women with higher
education (42%).
As in other EU members, the unemployment rate in Slovenia is higher among women
(6.1%) than among men (4.2%), while 11.8% of Slovenian women work part time.
The average unemployment rate for women in the EU stands at 8.5%, whereas almost
a third of women in employment do not work full time.
Survey Highlights Poor Education of Slovenian Entrepreneurs
According to the results of the Global Entrepreneurship Monitor (GEM) 2006 survey,
an average Slovenian entrepreneur lacks education
While only some 100,000 Slovenians are in entrepreneurship (8% of the country's
labour force), their quality is even more important than their numbers. According to
the results of the Global Entrepreneurship Monitor (GEM) 2006 survey, an average
Slovenian entrepreneur lacks education.
Head of the GEM project for Slovenia Miroslav Rebernik presented the results on
Thursday, 8 March: "Our aim is not to have a sky-high number of entrepreneurs but to
have competent and competitive ones".
While Slovenian entrepreneurs are less educated than their global counterparts to start
with, data shows that those who became entrepreneurs in 2006 were even less
educated. "This is alarming," added Rebernik.
Janko Burger of the Economy Ministry meanwhile said that a "typical Slovenian
entrepreneur is a middle-aged man with very low education".
This probably means that these individuals are unable to present themselves as
entrepreneurs for the areas of high technologies or become partners for large
companies, added the acting director of the Entrepreneurship Directorate.
The survey results have also shown that 70% of those polled set up the company
because they wanted to be free and independent.
"This means that existing companies are probably very autocratically run and
prevented these individuals from fulfilling their entrepreneurial spirit," Rebernik
added and highlighted this as a reason that the average value added per employee in
Slovenian companies is three times lower than in Europe.
Rebernik also believes that Slovenian entrepreneurs need to make the shift from the
"spade to modern technologies" and ditch the mentality that profit is something ugly
that was created through exploitation of workers.
The survey was carried out in 42 states and Slovenia was placed 35th in terms of new
entrepreneurs and 32nd in terms of existing entrepreneurs.
FINANCE
SKB Banka Grows at Double-Digit Rates
SKB banka, a top-5 Slovenian bank, posted a pre-tax profit of EUR 21.6m for 2006
SKB banka, a top-5 Slovenian bank, posted a pre-tax profit of EUR 21.6m for 2006,
up 13% year-on-year, while total assets grew by 11% to EUR 2.25bn. "Last year was
tough but we are pleased as we carried out the euro project very successfully and
managed to set a trend that shows positive results," chairwoman Cvetka Selsek told
the press on Wednesday, 7 March.
According to Selsek, the bank's tax burden was higher last year. Moreover, the results
for 2005 and 2006 are not directly comparable due to the introduction of International
Accounting Standards.
Profit after tax amounted to EUR 15.86m over the year before and net financial and
operating revenues topped EUR 81.4m. "The growth rate is not extravagant, but it
indicates a trend which we are pleased to have achieved," she said.
The changeover to the euro cost the bank, which is owned by French banking group
Societe Generale, an estimated EUR 4m. The bank will also lose EUR 4m this year
due to services which have been rendered obsolete with the switch to the single
European currency.
Andre-Marc Prudent, vice-president of the management board, said the bank, which
focuses on universal banking services, planned to increase the number of customers
by 5% this year. Loans to non-banking customers are to expand by 30% and pre-tax
profit is expected to swell by 20% as the bank cuts operating costs.
NLB Group Has Long-Term Plans for Serbian Market, Chairman Says
Marjan Kramar, chairman of Slovenia's largest banking group, NLB, said in
Belgrade that the group entered the Serbian market with the intention of making longterm investments
Marjan Kramar, chairman of Slovenia's largest banking group, NLB, said in Belgrade
on Friday, 9 March that the group entered the Serbian market with the intention of
making long-term investments.
Kramar told the press, as reported by Serbian media outlets, that NLB's plans to
construct a big office building in the Serbian capital were proof of its intention for a
lasting presence in this country.
Kramar also said that NLB Continental banka in Novi sad, which was acquired by the
group in 2005, was holding talks with the International Financial Corporation (IFC)
on a EUR 7m capital injection, which could take place before July.
The bank's capital at the moment amounts to EUR 290m and IFC would acquire only
a minority share through the capital increase. After the injection it would also provide
the bank with a EUR 20m long-term loan, Kramar explained.
Ljubljana Stock Exchange
The SBI 20 benchmark index ended the week 79.03 points (1.12%) higher at 7,155
Slovenian blue chips managed to turn around a gloomy start to the week to regain all
of the losses and even register gains by the close of trading on Friday. The SBI 20
benchmark index ended the week 79.03 points (1.12%) higher at 7,155, while the SBI
TOP index of the six biggest blue chips was up 23.88 points (1.45%) at 1,628.73.
In a delayed reaction to the recent global selling spree, Slovenia blue chips tumbled
on Monday, causing the SBI 20 to loose over 2.5%. However, trading regained
positive momentum by Wednesday, and extensive gains on Thursday and Friday were
enough to push the main market index into positive territory for the week.
The action was quite brisk throughout, as brokers closed a total of EUR 41.4m in
regular deals and EUR 23.4m in block deals over the five days.
Keeping true to their status of market maker, shares of pharma company Krka
generated nearly half of all regular turnover and led the rest of the market higher with
weekly gains of 1.46% to close at EUR 847.97.
Other big names joined Krka in the winners column: telco Telekom Slovenije was up
2.01% to EUR 356.90 and energy group Petrol was up 1.87% to EUR 540.21.
Technical goods retailer Merkur registered the biggest gains among shares with
noteworthy volumes last week, surging 2.49% to EUR 234.16.
Also in the winners column, shares of beverage group Pivovarna Lasko put on 1.93%
to EUR 44.34.
Following the blue chips on their rebound were shares of popular investment
companies, which had an even higher mountain to climb after they sunk nearly 3% on
average on Monday.
However, strong demand in the latter part of the week helped them surge and the PIX
investment fund index closed the week 44.04 points (0.8%) higher at 5,562.99.
Meanwhile, the BIO bond index was up 0.26 points (0.22%) at 117.58.
BRANCH INFORMATION
Vrisk: Cooperatives Have to Take Part in Regional Development
Agriculture is one of the key factors in the development of the countryside
Agriculture is one of the key factors in the development of the countryside, which
means cooperatives need to be incorporated into all segments of regional
development, the head of the Cooperatives Association Peter Vrisk said at launch of
the 34th annual conference of cooperatives in Portoroz on Tuesday, 6 March.
Cooperatives employ 3,500 people and provide invaluable aid to 10,000 Slovenian
farmers who would have a very difficult time selling their products without them,
Vrisk said as he addressed the two-day conference, dubbed "Between tradition and
Innovation".
According to Vrisk, cooperatives have to be innovative and show young people that
life in the countryside has a future, while they also have to promote vertical
integrations and mutual partnership.
Janez Susnik pointed out that Slovenia has to do more to promote high quality
Slovenian products at home.
Local Government and Regional Policy Minister Ivan Zagar meanwhile said that now
was an extremely important time for the development of agriculture as there were
enough funding opportunities available to enable the implementation of planned
projects.
Finally, Justice Minister Lovro Sturm pointed out that last year was very successful
for the Agriculture Ministry in terms of resolving denationalisation request. Having
resolved 600 requests, the ministry improved significantly on the previous year,
Sturm said.
New Minister Says Cooperatives Need To Adapt to Changes
The freshly appointed Agriculture Minister Iztok Jarc made a stop at a conference of
cooperatives in Portoroz and called for a joint effort in increasing the competitiveness
of cooperatives on the market
The freshly appointed Agriculture Minister Iztok Jarc made a stop at a conference of
cooperatives in Portoroz on Wednesday, 7 March and called for a joint effort in
increasing the competitiveness of cooperatives on the market.
"Cooperatives play a very important role in Slovenian agriculture and the
development of the countryside," Jarc said in a written address, which had been sent
to the conference participants on Tuesday, 6 March.
"This is why we all have to join forces and do all we can to increase their
competitiveness and create a firm system of cooperatives, which will have long-term
positive effects for both the food processing industry and farmers, as well as for the
population in rural areas," the minister stressed.
According to Jarc, the transition to the market economy and EU accession brought
certain organisational and structural changes for Slovenia. Added to that, Slovenian is
facing mounting pressures of globalisation and the liberalisation of the world's
agricultural market, he pointed out.
"We cannot avoid these changes. We need to adapt to them and find ways in which
they can benefit us...This also goes for the cooperatives," the minister for agriculture,
forestry and food said.
The ministry is very much aware that the restructuring of the cooperatives is a lasting
process in which it wants "to play an active role and help in line with legal and
budgetary possibilities", Jarc said, adding that he hoped cooperatives would be
entitled to funding as part of the rural development programme.
Jarc announced the ministry would push for changes to the cooperatives act that
would provide for the possibility of commercial cooperation among cooperatives and
make it easier for them to obtain state aid.
Official: Second Reactor at Krsko Likely (interview)
The director of Slovenia's nuclear watchdog, Andrej Stritar, believes everything
seems to point to the fact that a second reactor will be built at Slovenia's sole nuclear
power plant at Krsko
The director of Slovenia's nuclear watchdog, Andrej Stritar, believes everything
seems to point to the fact that a second reactor will be built at Slovenia's sole nuclear
power plant at Krsko.
In an interview for STA, Stritar said that the owner of the Krsko Nuclear Power Plant
(NEK) (the state of Slovenia owns half, while Croatia has the other half) would likely
decide to extend the life of the current reactor.
All economic indicators suggest that a decision to continue operating beyond 2023 is
a logical one, the head of the Nuclear Safety Administration said.
Moreover, Stritar believes plans for the construction of a second reactor at Krsko are
earnest and that a second reactor will likely be built at NEK.
Speaking on the sidelines of a meeting of the Board of Governors of the International
Atomic Energy Agency (IAEA), Stritar said that the location of the repository for
nuclear waste in Slovenia would "almost certainly lie in the vicinity of NEK".
While current plans put the location of the repository at Vrbina near Krsko, SE
Slovenia, Stritar said that a location only several hundred metres away was also in the
running.
He said the final decision on the location would "have more to do with social
acceptance than with technical issues".
He said that there were virtually no risks associated with the repository, as it would be
built below the ground and would be flooded with cement. "There will be no
increased radiation above the repository," he said.
The important thing will be to ensure that radioactive solid particles do not enter
nearby springs and subsequently enter the food chain.
Given the technical plans for repository, it is almost impossible that this could
happen. "Even an earthquake could not cause anything exceptional," he added.
Speaking about this week's session of the Board of Governors of the IAEA, the
official, who led the Slovenian delegation, said that "nothing dramatic" happened at
the meeting as far as Slovenia was concerned.
Apart from the Iranian and North Korean nuclear programmes, the body also debated
annual reports on the development of nuclear technology and on nuclear safety.
"There was nothing dramatic for Slovenia and other countries did not have any major
issues with these reports either," Stritar told STA.
Asked about IAEA oversight in Slovenia, Stritar said that every gram of nuclear
material was logged by the organisation, which keeps a register of all nuclear material
in the world.
Although Slovenia does not have enriched uranium, which could be used in the
production of a nuclear bomb, it is still subject to inspections from the IAEA.
Slovenia has had no problems whatsoever with inspections so far, he added.
Asked about Slovenia's sources of nuclear fuel, Stritar said that NEK buys its fuel on
the open market and then sends it to the US for processing.
Stritar also explained that Slovenia was both a recipient and giver of IAEA technical
assistance. He added that the country would stop receiving assistance in due course,
since interest for it was fading among Slovenian institutions.
No Cases of Swine Fever Discovered in Slovenia So Far
After Croatian authorities informed Slovenia on 8 March of an outbreak of swine
fever in an area in close proximity to the border, veterinarians started checking the
pigs in a three-kilometre protected area on 9 March
After Croatian authorities informed Slovenia on Thursday, 8 March of an outbreak of
swine fever in an area in close proximity to the border, veterinarians started checking
the pigs in a three-kilometre protected area on Friday, 9 March. So far no suspicious
cases have been discovered, the Slovenian Veterinary Administration (VURS) said.
VURS officials told the press that vets are expected to finish the examination of the
112 farms with around 2,000 pigs in the three-kilometre quarantine zone on Saturday.
Hinko Maver of the Novo mesto VURS office told STA that 18 veterinarians are to
examine the 550 farms located in the 10-kilometre surveillance zone by 15 March.
Maver added that farmers in the area were being updated on all necessary measures.
In line with regulations, special measures have been adopted, banning the
transportation of livestock, and mandating the use of disinfection mats as well as the
use of protective clothing by those in contact with animals.
VURS director Vida Cadonic Spelic said on Thursday, 8 March that an outbreak site
was uncovered last week by Croatian authorities at a farm in Vucilcevo only 500
metres from the border.
Swine fever, a highly contagious viral disease of pigs and wild boar, is caused by a
virus. The most common method of transmission is direct contact between healthy
swine and those infected with the disease. It is not dangerous to humans.
The last outbreak of the disease in Slovenia was in 1996.
Tourism Official: Results of Survey an Obligation to Improve
Slovenian Tourist Board (STO) director Dimitrij Piciga said that the fact Slovenia
placed 44th in the world in a survey on the most attractive environments for
developing tourism was also an obligation to improve in areas where the country fell
short of expectations
Slovenian Tourist Board (STO) director Dimitrij Piciga said that the fact Slovenia
placed 44th in the world in a survey on the most attractive environments for
developing tourism was also an obligation to improve in areas where the country fell
short of expectations.
In a press release, Piciga said he was convinced that by carrying out plans for
developing the tourist sector, Slovenia could climb up the ladder as quickly as by next
year.
The survey published on 1 March by the World Economic Forum (WEF) placed
Slovenia among the countries above the average, Piciga explained, adding that this
was positive on one hand, while on the other many things still had to be improved.
He added that the opening of new air routes and the development of e-marketing tools
were key activities that would improve Slovenia's position.
Head of the Tourism Directorate at the Economy Ministry Marjan Hribar meanwhile
said that the survey revealed Slovenia's weakest points were in legislation, lack of
foreign investment and underdeveloped airline sector. He added that the most
attention was already being paid to these areas.
In the survey Slovenia received good grades for health and hygiene, safety and tourist
infrastructure, while its weaker points included its regulatory framework, airline
infrastructure and price competitiveness in tourism.
COMPANIES
Zlata Moneta 2 Moves to Acquire Etra 33
Zlata Moneta 2 already owns almost 20% of Etra 33
Zlata Moneta 2, the Maribor-based asset management firm, on Monday, 5 March
published a takeover bid for Etra 33, a maker of transformers, worth EUR 16.2m.
Zlata Moneta 2 already owns almost 20% of Etra 33 and is offering EUR 446.5 per
share for the entire outstanding stake in a bid that expires on 3 April.
Etra 33 was worth EUR 474 on the Ljubljana Stock Exchange on 14 February when
the tentative takeover offer was announced, but it has since slid to EUR 440.
Etra 33 is specialised in the manufacture, installation and servicing of power,
distribution and special transformers.
It has a workforce of 160 and posted sales of EUR 25m last year.
Watchdog Says Emona Obala Acquisition in Line with Rules
Orbico acquired 50.39% of Emona Obala from investment companies Modra linija,
Primorski skladi and Interfin, and the state-run Restitution Fund (SOD) in an auction
in mid-January
Wholesaler Orbico's takeover of wholesaler and retailer Emona Obala is in line with
competition regulations, the Competition Protection Office said on Monday, 5 March.
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Orbico acquired 50.39% of Emona Obala from investment companies Modra linija,
Primorski skladi and Interfin, and the state-run Restitution Fund (SOD) in an auction
in mid-January.
It published a takeover bid for Emona Obala, offering EUR 7.5 per share of the
Koper-based company on 9 February. The offer for the 863,872 shares is valid until 9
March.
SIJ Confirms Anticipated 2006 Results
SIJ wrapped up 2006 with EUR 543m in sales revenues, up 16% over the year before
The supervisory board of the Slovenska industrija jekla (SIJ) steel group reviewed on
Monday, 5 March the sale of a 55.35% state stake to the Russian Koks group for EUR
105m and unaudited business results for 2006. The results do not differ substantially
from predictions published in December last year, SIJ said.
SIJ wrapped up 2006 with EUR 543m in sales revenues, up 16% over the year before.
However, the company with 3,030 employees saw its net profit drop by 34% to EUR
23m, spokeswoman Anja Potocnik told STA.
SIJ group includes 14 companies, the core companies being Acroni Jesenice, which
makes high-end flat steel products, and Metal Ravne, which specialises in the
manufacturing of high-speed steels and certain special and construction steels.
Steelworks Acroni was the outstanding performer in 2006, increasing sales by 27% to
EUR 363m. Its net profit amounted to EUR 13.3m, down 25% on 2005.
Metal, with intensive investment activities in 2006, noted revenues half of those of
Acroni - EUR 141.1m and net profit of EUR 9.2m.
Elan to Miss 2007 Targets Due to Mild Winter
Ski equipment manufacturer Elan will produce 640,000 pairs of skis in 2007
Ski equipment manufacturer Elan will produce 640,000 pairs of skis in 2007, 20%
below the target for the year, the supervisory board of Elan's owner Skimar was told
at an extraordinary session on Monday, 5 March.
Skimar management board member Matjaz Sarabon said that even if the next winter
was "normal", Elan would still fail to reach its mid-term plan, which envisages the
production of around million skis by 2008.
According to Sarabon, Elan is not the only company in trouble as the global ski
industry is expecting a sales decrease of between 15% to 20% this year.
"Elan is certainly in a better position than other producers because we have our own
trademark, while at the same time produce skis for foreign trademarks," said Sarabon.
Elan also expects a drop in sales by 12%, considerably less than is expected to hit
other companies. Sarabon attributed that fact to Elan's successful repositioning as a
manufacturer of mid- and high-class skis.
Public Broadcaster Boasts a Successful 2006
RTV Slovenija managed to increase advertising and commercial revenues as well as
cut cost last year
RTV Slovenija managed to increase advertising and commercial revenues as well as
cut cost last year, which makes for a successful 2006, general manager Anton Guzej
told the press on Tuesday, 6 March. "The satisfaction is even greater due to higher
ratings," he said.
Guzej said licence fees accounted for only 66.4% of revenues (the fees have not
grown with inflation), which makes other revenues crucial if RTV Slovenija is to
operate in the black.
He said revenues from commercial activities increase to 31.7% of all revenues and are
projected to grow further, while advertising revenues amounted to EUR 21.6m.
What is more, the broadcaster cut costs by EUR 2m and the number of employees was
reduced by 45. This year the payroll is to be cut by a further 120 mainly through early
retirement, for which EUR 835,000 is to be spent.
Guzej said the broadcaster intends to double the amount of investment to EUR 20m
and start construction of a new news centre.
TV Slovenija director Joze Mozina was sanguine about the television's ratings, as the
overhauled programming concept arrested the falling trend of viewers. Furthermore,
TV Slovenija's entertainment and cultural programmes saw an increase in viewers.
The TV's news programmes did not lose "a lot of viewers", according to Mozina.
However, these programmes will not follow the competition by using a more
sensational approach, which is perhaps less credible but more viewer-friendly.
According to Mozina, TV Slovenija lost 1% of its viewers in 2006 over 2005, while
data from the beginning of this year shows that their numbers were increasing again.
The broadcaster's radio division also managed to maintain the number of its listeners,
said Radio Slovenija director Vinko Vasle.
Telekom Signs Deal on Second Kosovo Mobile Licence
The agreement was signed by Telekom chief executive Bojan Dremelj, the boss of
Telekom's wireless subsidiary Mobitel Klavdij Godnic, Akam Ismaili of Ipkonet and
Kosovo Telecommunications Agency director Anton Berisha
Telco Telekom Slovenije and Kosovo officials signed an agreement in Pristina on
Tuesday, 6 March, making Telekom's subsidiary Ipkonet the region's second mobile
operator.
The agreement was signed by Telekom chief executive Bojan Dremelj, the boss of
Telekom's wireless subsidiary Mobitel Klavdij Godnic, Akam Ismaili of Ipkonet and
Kosovo Telecommunications Agency director Anton Berisha.
Telekom won the licence after Kosmocell, the company that was initially declared the
winner, failed to pay the licence fee in time.
As a result, the agency withdrew the licence from Kosmocell and awarded it to
second-placed Ipkonet. The Slovenian consortium paid the EUR 75m licence fee on
22 February.
Kosovo Prime Minister Agim Ceku expressed his satisfaction that the deal, which is
important for the locals, was finally closed.
This will boost competition in the field of communications and give consumers more
choice, he said prior to the signing.
The second mobile operator in the region will also bring new investments in the
telecommunication infrastructure, development and new jobs, Ceku added.
Beside paying the licence fee, Telekom will invest some EUR 120m in the
construction of a mobile network, which will make it one of the largest Slovenian
investors in Kosovo.
The construction is to start immediately and the basic infrastructure is to be finished
by the end of the year, so that first services should be available by then.
Telekom Slovenije expects that in the next five years it will acquire a 50% market
share and have around one million subscribers after eight years.
Telekom and Ipkonet also have plans in other businesses, including internet and fixed
line network.
Cankarjev Dom Finishes 2006 With Profit
The Cankarjev dom arts and congress centre generated EUR 9.93m
The Cankarjev dom arts and congress centre generated EUR 9.93m in revenues while
the costs of Slovenia's largest arts centre totalled EUR 9.76m. The resulting profit of
EUR 170,000 will be invested into equipment, Delo writes on Wednesday, 7 March.
The institution saw 463,971 visitors who were able to see 1,146 shows. Congresses
and other activities meanwhile attracted a total of 125,356 visitors, daily Delo reports
on the Tuesday, 6 March meeting of the Cankarjev dom council.
On the income side, Culture Ministry allocated some EUR 4.9m (49% of the total
revenues) for programmes in Cankarjev dom. Sponsors and donors meanwhile
contributed 6% of revenues, while other sources accounted for a further 3%.
According to the Director General Mitja Rotovnik, the only financial failure in 2006
was the festival of contemporary performing arts Exodos, as it did not draw enough
spectators.
Droga Kolinska Selling Multiple Brands
Droga Kolinska, Slovenia's largest food company, is shrinking its brand portfolio
Droga Kolinska, Slovenia's largest food company, is shrinking its brand portfolio. The
company said on Wednesday, 7 March it was selling several brands to the best bidder,
complete with recipes and know how.
The company is getting rid of the popular Viki chocolate and cream spread (which is
valued at EUR 1.2m), Salatina and Talis vinegar (EUR 1.1m), Belsad jams (EUR
1.1m) and Cunga Lunga chewing gum (EUR 50,000).
Droga Kolinska said in a press release that the brands accounted for less than 0.5% of
total sales each.
The company was created in January 2005 with the merger of Droga and Kolinska
and the plan has been to focus on the most lucrative brands.
These include the soda drink Cockta, mineral water Donat Mg, coffee Barcaffe, teas
1001 Cvet, Zlato polje rice, Argeta meat pates, Grand kafa coffee and Soko Stark
sweets.
The brands put up for sale would not have received enough marketing support so it
makes sense to sell them, the company said.
Rail Operator Turns Loss into Profit in 2006
Taking into account the new accounting standards, the company actually ended the
year with a pre-tax profit of EUR 10.06m
Rail operator Slovenske zeleznice posted a pre-tax loss of EUR 250,000 for 2006,
down from EUR 13m the year before. However taking into account the new
accounting standards, the company actually ended the year with a pre-tax profit of
EUR 10.06m, deputy general director Branko Omerzu told the press on Wednesday, 7
March.
"I want to explicitly stress both figures...since some media reports suggested that this
was an accounting scam designed to disguise or conceal the actual results," Omerzu
explained.
The difference stems from the accounting of the costs of regular repairs, which
totalled EUR 14.6m last year. In line with old accounting standards, the company
would charge that as an expense for last year, but new standards distribute the
expense over six years.
According to Omerzu, figures for the first half of 2006 showed that the company
could end the year with a loss in excess of EUR 25m, but the management took a
series of measures and reversed the trend.
In volume terms, the rail operator shipped 18.81 million tonnes of cargo, up 3.9%
year-on-year, while the number of passengers increased by 2.5% to 16.13 million.
However, cargo as well as passenger transport are still loss-making businesses,
according to Omerzu.
The pre-tax loss from cargo transport nearly doubled to EUR 8.97m, while passenger
transport generated a loss of EUR 3.7m, up from EUR 2.55m in 2005.
Labour costs, which topped EUR 126m, accounted for 57.2% of all costs, on par with
the year before. At the end of 2006 the company employed nearly 8,000 people.
The plan for this year has not been made yet. In the best case scenario, the company
could break even, Omerzu said.
Ryan Air to Begin Flights to Maribor in June
Irish budget airline Ryanair is to start flying between Maribor, Slovenia's second
largest city, and London as of 7 June
Irish budget airline Ryanair is to start flying between Maribor, Slovenia's second
largest city, and London as of 7 June, Ryanair representatives announced at a press
conference at the Maribor international airport on Thursday, 8 March.
Ryanair's sales and marketing executive for Central Europe, Tomasz Kulakowski,
explained that three weekly flights would take place between Maribor and London
Stansted airports. Flights can already be booked on Ryanair's website for the price of
one cent, excluding taxes.
According to Kulakowski, the planes of the Irish carrier would head for Maribor each
Tuesday, 6 March, Thursday, 8 March and Saturday at around 11 AM and take off
from the Maribor airport at around 1:30 PM. With the taxes included, a ticket is
expected to cost around EUR 21.
Kulakowski said that the company expected 40,000 passengers in the first year, with
the potential success of the new route presenting a basis for a possible expansion of
Ryanair's operations from the Maribor airport. The company's experience had shown
that if the route to London is not viable, no other route is either.
Transport Minister Janez Bozic meanwhile said that the state fulfilled all of its
promises towards the airport, singling out the contract on the use of airport
infrastructure and its handover. Bozic added that the state also paid EUR 300,000 for
four out of seven airport vehicles.
The plans for the airport terminal are also entering into their final stage. The building
would have a total of half a million of passengers a year and a peak throughput rate of
4 arrivals and departures every hour, the minister said.
Matjaz Sonc, the director of Aerodrom Maribor, the company managing the airport,
meanwhile said that the company will invest EUR 5m into projects to secure
sustainable growth of the airport and seek out new links.
Hribar: Arrival of Ryanair Will Boost Airline Sector
The arrival of Irish budget airline Ryanair to Maribor airport is a "very important
step" in the development of the airline sector in Slovenia
The arrival of Irish budget airline Ryanair to Maribor airport is a "very important
step" in the development of the airline sector in Slovenia, the head of the Tourism
Directorate at the Economy Ministry Marjan Hribar told STA on Friday, 9 March.
Hribar said Ryanair's decision to launch the London-Maribor route, which was
unveiled on Thursday, 8 March, was crucial in bolstering the presence of foreign
airlines in the country.
"It is an extremely important step forward, which will surely attract other budget
airlines," said Hribar.
Hribar added that the ministry's first goal in tourism was establishing a central
booking system, while the development of the airline sector was the second strategic
objective.
The flights are expected to bring more guests from Great Britain, primarily to
northeastern Slovenia, said Hribar. He believes that the majority of visitors will visit
spas, golf courses, and similar facilities in the region.
Hribar did not want to comment on other potential budget airlines interested in using
Maribor airport, but said that the airport was expecting more queries.
Tomasz Kulakowski, Ryainair's sales and marketing executive for Central Europe,
said on Thursday, 8 March the airline would operate three weekly flights between the
Maribor and London's Stansted airports as of 7 June.
German Discount Chain Lidl Entering Slovenian Market
German discount chain Lidl is to open on 29 March 15 stores throughout Slovenia,
becoming the sixth discount chain on the Slovenian market
German discount chain Lidl is to open on 29 March 15 stores throughout Slovenia,
becoming the sixth discount chain on the Slovenian market.
Lidl will join foreign discount chains Hofer and Eurospin, and Slovenia's Hardi, Plus
and Hura.
Lidl has over 7,000 stores in 20 European countries, selling more than 2,000
foodstuffs and other products of domestic and foreign producers.
The main objective of the company is entering new markets and bolstering its
presence on existing markets, Lidl said on its website.
The company seeks to attain dynamic growth, while analysts expect that it will not
capture more than 10% of the Slovenian grocery market.
More than 80% of the Slovenian grocery market is currently held by the three biggest
retailers, Mercator, Spar and Tus.
Lidl arrives to Slovenia a year after its rival Hofer, which has since captured a 2.1%
share of the market.
Krka Group Ups Revenues by 21% in 2006
The Krka group, including pharma company Krka, upped its sales revenues to EUR
667.4m in 2006
The Krka group, including pharma company Krka, upped its sales revenues to EUR
667.4m in 2006, up 21% over 2005, the group said on Friday, 9 March. The group's
net profit was meanwhile up 15% to EUR 111.6m.
According to unaudited business results, the group's exports accounted for 84% of its
sales and stood at EUR 563.3m.
The lion's share of the revenues and profit were generated by core company Krka,
which posted a profit of EUR 113m on net sales revenues of EUR 586.1m.
The group sold most of its products and services in Eastern Europe (EUR 180.6m,
32% more than in 2005), with Russia being the group's largest single market with
EUR 129.8m.
The group sold EUR 535.5m of prescription drugs, earned EUR 71m from sales of
self-medication products and EUR 9.6m from cosmetics.
It moreover sold EUR 22.8m worth of animal health products and got EUR 28m from
health tourism services.
The group employed 5,759 workers in 2006 and earmarked EUR 107.2m for
investments in the same year.
Investments for 2007 are to stand at EUR 130m, while the number of employees is to
increase to over 6,300.
It plans sales revenues of EUR 750m in 2007, with the majority of growth coming
from foreign markets.
Apart from the core company, the group includes Krka subsidiaries in Croatia, Serbia,
Macedonia, Russian Federation, Poland, Hungary, Czech Republic, Ireland, Sweden,
Germany and Italy.
Krka also owns spa operator Terme Krka.
Orbico Increases Stake in Emona Obala to 95%
Wholesaler Orbico is pleased with the results of its takeover bid for Emona Obala,
the Koper-based wholesaler and retailer
Wholesaler Orbico is pleased with the results of its takeover bid for Emona Obala, the
Koper-based wholesaler and retailer. Orbico managed to add 44.96% to its existing
stake of 50.39% and now owns 95.35% of Emona Obala, the company said on Friday,
9 March.
Orbico offered EUR 7.5 per share in a bid, published on 9 February. The company
had pledged to publish the offer after it acquired 50.39% of the struggling Emona
Obala in an auction in mid-January.
During the bid, Orbico managed to acquire 35.42% of shares from Emona Obala's
owners and a 10% stake from Emona Obala's own fund of shares.
SLOVENIA IN BRIEF
SIJ Small Shareholders Say State Has Failed to Keep Promise
Small shareholders of the Slovenska industrija jekla (SIJ) steel group, joined in the
Druzba pooblascenka Ravne company (DPR), have expressed amazement and
disappointment over the state's recent decision to sell a 55.35% stake in SIJ to Russian
company Koks.
Drnovsek and El Baradei Discuss Iran's Nuclear Crisis
President Janez Drnovsek met IAEA Director General Mohammed El Baradei in
Vienna on Tuesday, 6 March. The pair talked about Iran's nuclear crisis, the
president's office told STA.
Parliament Confirms Both New Ministers
Parliament confirmed on Tuesday, 6 March Iztok Jarc as the new minister of
agriculture, forestry and food as well as Ziga Turk for the post of development
minister without portfolio.
Rehn Calls on Slovenia, Croatia to Solve Open Issues Soon
EU Enlargement Commissioner Olli Rehn said in Brussels on Tuesday, 6 March that
it would be best if Slovenia and Croatia solved open bilateral issues before Slovenia
takes over as the presiding EU country in the first half of 2008. "I see the Slovenian
presidency as Croatia's ally and I am counting on it to bring the Western Balkan
closer to the EU."
PM Says Slovenia does not Link Open Issues with Croatia's EU Bid
Slovenia does not tie open issues with Croatia with its southern neighbour's EU
aspirations, PM Janez Jansa said in Brussels on Thursday, 8 March. "Stressing
arbitration or bilateral relations in connection with Croatia's EU bid is somewhat
misplaced, there are other challenges for the candidate state to tackle," Jansa said
prior to the launch of the EU summit.
Central Bank Boss Nominee Fails to Win Vote
Andrej Rant, President Janez Drnovsek's nominee for the post of central bank
governor, failed on Friday, 9 March to garner the necessary 46 votes in parliament to
be appointed to the post. While 34 deputies voted for the Banka Slovenije vicegovernor, 38 voted against.
Slovenia Becomes Member of EUMETSAT
Slovenia became the 21st member of the European Organisation for the Exploitation
of Meteorological Satellites (EUMETSAT) on Friday, 9 March as an agreement to
that effect was signed by Slovenian and EUMETSAT representatives.