ISLAMABAD, Sept 2: The Privatization Commission has invited all the three prequalified bidders of the United Bank Limited (UBL) to take part in the fresh bidding here on September 5.

However, informed sources said on Monday that MCB group—the highest bidder—of the UBL is reluctant to take part in the fresh bidding by terming the new exercise as illegal and against the spirit of the privatization.

The chairman of MCB group Mian Mansha met separately Minister for Finance Shaukat Aziz and Minister for Privatization Altaf M. Saleem on Monday. During the meeting both the minister urged Mr. Mansha to take part in the fresh bidding. He met the two ministers on their request.

“There are some positive developments and we hope that the government will give certain weight to our thinking that there is no need for any fresh bidding as we had followed certain laid down criteria and procedure for the privatization of the UBL,” said a source close to the chairman of the MCB group.

When contacted he said that MCB group has taken a detailed legal opinion from the leading constitutional and legal experts and have come to the conclusion that it did not need to participate in the fresh bidding on next Thursday.

“Both Syed Sharifuddin Pirzada and Khalid Anwar have advised the MCB group to stay away from the fresh bidding as our case is very strong,” he said.

The officials of the Privatization Commission when approached said that the MCB group, Abu Dhabi & Bestway Consortium and Union Bank group have been formally invited to take part in the fresh bidding for UBL on coming Thursday. They said due to certain logistic problems, the proposed bidding could not be held on Monday as was earlier planned.

They claimed that Cabinet Committee on Privatisation (CCoP) was the final authority to decide any privatization transaction. “The CCoP had decided this fresh bidding which is obsoletely legal as per the privatisation law,” an official said.

He claimed that all the three highest bidders were interested in taking part in the fresh bidding and that was why none of them has asked for the withdrawal of Rs600 million security, deposited with the Privatization Commission.

When told that the MCB group has taken a legal opinion from the two constitutional experts and it might not take part in the fresh bidding, the official said this would be their decision.

However, he was hopeful that MCB group will be present on Thursday. “How can we ignore the fact that the second highest bidder — Abu Dhabi group of UAE — has offered Rs300 million more than the MCB group to get majority shares,” the official said.

The MCB group had given Rs12 billion offer followed by Abu Dhabi & Best Consortium and Union Bank group they offered Rs4.8 billion and Rs4.5 billion respectively for acquiring majority shares of the

UBL. Later, the Abu Dhabi group had surprised everyone by increasing its offer to Rs12.3 billion.