DUTCH BID FOR HUNGARIAN RECORD FIRM FAILS

DUTCH BID FOR HUNGARIAN RECORD FIRM FAILS

The Hungarian privatization body APV Rt said Monday it has decided to sell the record company Hungaroton Magyar Hanglemezgyarto Rt to a Hungarian firm, rejecting a higher offer from Dutch Polygram NV.

Although Polygram's bid was several times what tender winner Magyar Muveszek Konzorciuma offered, the Dutch firm wanted too many guarantees from APV, director Attila Lascsik said. He did not specify what the guarantees were.Mr. Lascsik declined to say what either bidders offered.

He added both were willing to pledge that they would publish a certain number of works from Hungarian artists each year.

Mr. Lascsik said Magyar Muveszek is made up of Hungarian artists.

Hungaroton was the monopoly record publisher under communism.

Polygram is 75 percent owned by the Dutch consumer electronics giant Philips.