The chronicle of Eger Tobacco Factory

On the great ship

as machinery. This solution seemed quite promising. The 51% estimated Hungarian ownership stake established at HUF 1.6 billion would be rounded up to double the book value. It is worth spending some time on the dilemma raised by the issue: Hungarian majority-foreign majority. Why were we so reluctant to consider a majority foreign ownership? It must have been crystal clear to all after only brief thought on the matter that the factory couldn't be put on the next ship and taken to a faraway continent, moreover even to transport it to nearby Austria would have been stepping beyond the bounds of what was possible. Perhaps we feared, after seeing some worse-case examples, that the foreigner in question was only after our cigarette market, would close the factory and open a casino and entertainment centre within the 100-year-old inner city walls, and about which even in the second year of privatization there were some rumours. No, I think the fear had other reasons. In truth we identified the word “foreign” with the word “change”. And we only wanted to change 49% and not 51%. We wanted to see masses of capital flowing in, generous technological developments, USD 1 million in exports, fat salaries, but in such a way that meant we still only had to change slightly less than a half. We really needed time to understand the real essence of ownership. The fact, that is, that the proportions and shares form the object for free negotiations. Whoever has 49% today can have 51% tomorrow, and to achieve this he only has to agree with a small group of owners, or maybe with just one shareholder. We had contacts with ATW as early as the autumn of 1989, while at the same time - and always keeping to the unwritten rules of honourable business conduct - we also sent an information letter to our other licence partner on the new opportunities opening up in Hungary. Philip Morris kept silent - just as we hoped - so our negotiations with the Austrians went ahead without interruption. To start we gave preference to the ATW approach over Philip Morris. The apparent size of the Austrian tobacco factory, its geographical proximity, the similar cultural background originating from the Dual Monarchy, the monopolistic approach which we knew well, all indicated a reassuring future for the two companies.