PRIVATIZATION THROUGH THE SALE OF EQUITY – CONCEPTUAL FRAMEWORK AND ACHIEVED RESULTS IN SERBIA

Following the political changes in 2000, Serbia aggressively accelerated its process of economic transition, which initially started in 1990. As a key element of its transitional strategy, a new privatization model was defined in order to radically change the ownership structure of the Ser- bian economy. Based on characteristics of the Serbian economy in 2001, the new model stipulated the sale of socially- and state-owned enterpri- ses through tenders, auctions, and auctions on financial markets to stra- tegic and financial investors. As methods of privatization, tenders were used for the privatization of large, while auctions were used for the pri- vatization of medium and small size enterprises. By analyzing the re- sults of implementation of the new privatization model, this paper con- firms a hypothesis that the method of sale was the most adequate pri- vatization model in late transition. In addition, it also confirms that ten- ders were the most suitable method of privatization for large, while auc- tions were the most suitable method of privatization for medium- and small-size enterprises.