May 04, 2007	Friday	Rabi-us-Sani 16, 1428

KARACHI, May 3: The bidding for a controlling stake in the PSO may be delayed by several weeks due to a legal wrangle over disqualification of a bidder, an official source said on Thursday.

The government, which is selling all but three per cent of its 54 per cent holding in Pakistan State Oil, had set May 19 as the bid date. The sale is expected to fetch over $500 million.

But an official involved in the transaction said the date would “most likely” be extended.

“Though the official date is still May 19, the financial adviser has been asked to inform the bidders that it could be extended to the end of May or the beginning of June,” said the official, who did not want to be identified.

US investment firm JP Morgan is the financial adviser for the sale.

The Sindh High Court in Karachi has suspended a government order that disqualified the Attock Group of Companies from bidding, but a final ruling in the case is yet to be made.

The official said the government had no other option but to delay the bidding while Attock's case is pending.

The Attock Group is backed by the Pharaon Group of Companies, whose sponsor is Saudi investor Ghaith R. Pharaon.

The group owns Pakistan Oilfields and several other energy sector firms.

Another senior government official said the government may not be able to meet its deadline of completing the transaction before the 2006-07 fiscal year ends on June 30.

The government has long planned to sell stake in PSO, but has postponed it several times due to lack of investor interest.

But analysts say it is likely to succeed this time around, as many foreign and local companies have shown keen interest.

BP Plc, the British oil and gas group, is set to join Pakistan's Kohinoor Group in a bid for the stake.

Kohinoor was originally selected to bid with the Oman Oil Marketing Co, but industry sources say the latter would pull out of the group once BP enters.

—Reuters