Two privatisations over the coming months will determine the outcome of struggles for control of Cimpor and Portucel, Portugal's dominant cement and pulp and paper groups respectively. It will also bring to a head the battle for control of the company between Holcim of Switzerland and France's Lafarge, the world's two biggest cement groups, and their Portuguese partners. Sonae, the country's biggest conglomerate, is the leading contender. They will also have to declare agreements with other Cimpor shareholders. Holcim, whose E4.6bn bid for Cimpor was blocked by the government last year, is waiting to examine the details of the sale before deciding whether to lodge a proposal.
Analysts see the government's asking price as high.
Cimpor shares have more than doubled since the fight for control of the company began last year. Holcim owns 10 per cent of Cimpor, which it is understood to have acquired at an average price of E24.5 a share. Lafarge holds a similar stake. The government plans to sell 25 per cent of Portucel as a single block with an option to sell a further 15 per cent within three years. But it can withhold the sale of the additional 15 per cent if it wants to prevent the purchaser of the 25 per cent stake from gaining control of the company.