Absolut vodka maker to be sold via auction: govt

By Anna Ringstrom

STOCKHOLM (Reuters) - The Swedish government will auction Absolut vodka maker Vin & Sprit (V&S) VSG.UL next year in the boldest step yet in the country's record privatization scheme.

Analysts said V&S -- the crown jewel of the state-owned assets up for sale and producer of one of the world's top vodka brands -- could fetch up to $7 billion.

Financial Markets Minister Mats Odell told a news conference the government was contacting interested parties on Tuesday and that price would be the paramount consideration.

Only bids for the whole of V&S will be considered, Odell added, saying that while he believed Absolut production would stay in Sweden, this was not a requirement for the sale.

"It will be the one who pays the highest price and the one who after a full assessment shows that it offers the best (deal) for the Swedish households," he told reporters.

V&S, founded 90 years ago, has already drawn interest from U.S.-based Fortune Brands (FO.N), France's Pernod Ricard (PERP.PA), Bacardi, Britain's Diageo Plc (DGE.L) and Sweden's Investor (INVEb.ST) in partnership with private equity firm EQT.

Investor, Diageo and Pernod reiterated their interest on Tuesday.

"We have said for several weeks that we are waiting for the auction to start," said Pernod spokesman Francisco de la Vega.

The V&S sale is part of a push by the centre-right government to raise 200 billion crowns ($31.2 billion). The sales list also includes wholly owned mortgage lender SBAB SBAB.UL and real estate firm Vasakronan VASA.UL, along with stakes in bourse operator OMX OMX.ST, bank Nordea (NDA.ST) and telecom operator TeliaSonera (TLSN.ST).

Odell said OMX, which is subject to a bid from Borse Dubai launched in partnership with U.S. player Nasdaq (NDAQ.O), will likely follow V&S as the next government transaction.

The privatization looked on track in September but the resignation of two top advisers over a trading scandal at their previous employer raised some doubts about the schedule.

Opinion polls also have suggested a growing disenchantment among voters with the plan, which the government set out during its winning election campaign in 2006.

But Odell said he saw no reason to alter the timetable.

NO MISTAKES

Robert Berqqvist, chief economist at SEB, said the government was taking a careful approach to privatization both because of market conditions and political considerations.