Serbian government approved the strategic partnership deal between Fiat and Serbian car-maker Zastava, Serbian broadcaster B92 said on May 16 2008. The memorandum of cooperation was expected to boost Serbia's national automotive industry. read more

German copper extracting company Norddeutsche Affinerie AG became the sole owner of the Belgian concern Cumerio, the parent company of Bulgaria-based copper smelter Cumerio Med, Dnevnik daily reported on May 15. The merger will produce the largest copper smelting company in Europe and the third-largest anode and cathode copper making company in the world with an annual output worth 10 billion euro. read more

Bulgaria's Cabinet approved on May 15 the sale of 70 per cent in state shipping company Navigation Maritime Bulgaria (Navibulgare) to the KG Maritime Shipping consortium. The privatisation contract has to be signed within 60 days, the Government press service said in a statement. KG Maritime Shipping, a link-up between German and Bulgarian company, was the only bidder in the privatisation tender, submitting an offer of 440.1 million leva for the majority stake. It also pledged to invest 779.9 million leva over the next 10 years, including in the acquisition of 25 new ships, which would allow it to replace some of Navibulgare's current fleet. read more

Bulgarian National Bank (BNB) deputy governor Roumen Simeonov dismissed media reports that First Investment Bank (FIB) had run into liquidity or solvency problems and was about to launch bankruptcy proceedings, the bank said in a statemetnt on its website on May 15. The bank is not facing any penalties nor is in violation from regulations. read more

Nordic telecommunications operator TeliaSonera AB opened its first office in Sofia, the company said in a statement, quoted by Forbes. The move is part of the company’s plan to expand its IP network in Eastern Europe. “Our Sofia point of presence is a tangible sign of our belief in the Eastern European market,” TeliaSonera vice-president Malin Frenning said. read more

German energy giant RWE is still interested in acquiring 49 per cent in the company that will build and operate Bulgaria's second nuclear power plant on the Danube, Economy and Energy Minister Petar Dimitrov said on May 14, after meeting Holger Bietz, the head of RWE Power's merger and acquisitions unit. RWE, along with Electrabel of Belgium, were picked by the ministry as the finalists in the tender to pick a strategic investor, but reports in German media last month claimed the company was ready to withdraw from the race over safety concerns and doubts regarding the Russian technology that will be used at Belene. read more

In the first four months of 2008, sales of new vehicle rose by 27.42 per cent on the year to 20 119 units, data of the Union of Car Importers in Bulgaria (UCIB) revealed. The figure does not include data from several vehicle importers. In January-April, car sales rose by 24.3 per cent to 18 687 units. Opel led the rankings with 2 285 units. Toyota came second with 1 961 cars, followed by Ford and Volkswagen with sales of 1670 and 1571 new cars, respectively. read more

Buy on margin and sell short transactions on the Bulgarian Stock Exchange will set out in late summer, when an ordinance relaxing requirements for these transactions is due for promulgation in the State Gazette, Dnevnik daily reported on May 14. In short selling, investors sell securities that they do not own, but are committed to buy at some point, and is used usually when investors believe that the price of the stock will go down, allowing them to buy the security to cover the earlier deal at a lower price. Buying on margin is the practice in which securities are bought with borrowed money. read more

Bulgaria’s economy went two notches up to 39th place in the annual competitiveness ranking of the International Institute for Management Development (IMD), the Bulgarian partner of the Swiss business school, the Centre for the Study of Democracy (CSD), said in a statement on its website on May 14. The main obstacles to Bulgaria’s competitiveness, as outlined in the IMD World Competitiveness Yearbook 2008, are the heavy bureaucratic and regulatory obstacles to business, unfair competition (including institutional insufficiency, grey economy and corruption), infrastructure and human resources. read more

Another competitor for the future arrival of Starbucks has opened shop in Bulgaria – Flocafé, a Greek chain part of the larger Vivartia family. Flocafé Lounge Bar & Restaurant, which opened its doors on May 13 2008, takes the place of the Goody's on Sveta Nedelya Square in central Sofia; Goody's is also part of Vivartia. read more