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A STRATEGIC SALE is generally a privatization process, whereby a governmental enterprise is privatized by auctioning a state-owned enterprise to the highest bidder. It was once thought to maximize revenues to the government, since valuations obtained through this method were regarded as superior to what could be obtained from a MINORITY SALE, wherein shares in an enterprise are sold as public offers.

Auction theory currently holds that the first-price sealed-bid method of strategic sale is not revenue-maximizing. Instead, share-issue privatizations (SIPs) are now considered the optimal method of privatization.

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