Treuhandanstalt and investment acquisitions: How to ensure that contracts are kept?

Arbeitspapier

The process of selling a state-owned company in former centrally planned economies (CPEs) differs greatly from that of buying a private company in western market economies. While a private seller is normally interested in selling his portfolio expensively, a privatizing agency in CPEs has additional goals: she intends to ensure, e.g., that the purchaser continues the company, makes certain investments or maintains a certain number of jobs. Consequently, these concerns are a potential source of conflict. This paper gives an overview of how the German Treuhandanstalt (THA) copes with the problem. It investigates o first what the THA has done in establishing a contractual framework reflecting her social goals and - second how effective this framework has been in realizing them. The results are mixed: the THA has been very successful in putting an investor on the chain. However, she has invested a lot of money. Time must tell whether the results make all these efforts worthwhile.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Year: 1994 ; Kiel: Institut für Weltwirtschaft (IfW)

Classification and Topics

• Classification: Wirtschaft
• Subject: Privatisierung ; Übernahme ; Vertrag ; Neue Bundesländer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schmidt, Klaus-Dieter
• Event: Veröffentlichung
• (who): Kiel Institute of World Economics (IfW) ; ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel
• (when): 1994

Further information

• Handle: http://hdl.handle.net/10419/46705
• Last update: 10.03.2025, 11:41 AM CET