Madrid to keep hold of Tabalcalera

THE Spanish Government will publish legislation this week to ensure its continued control over the soon-to-be-privatised national tobacco producer and distributor Tabalcalera.

The Government will control of Tabalcalera for eight years after the sale of its 52.4% stake in the body.

The disposal, scheduled for completion on April 27, is expected to raise pta330 billion ($2.1bn).

Details of the legislation authorising the sale have still to be announced but they are likely to include a “golden share” proviso that will prevent rival tobacco groups taking a significant stake in the group.

• Financial Times 30/03/98 page 25