AUGUSTA, (AP) – Just over a week after the state chose a Massachusetts-based company to run its wholesale liquor business, lawyers for two losing bidders said they planned to appeal the decision.

Augusta-based Maine Liquors asked the state Monday to hold off on awarding the contract to Martignetti Companies of Norwood, Mass., pending an appeal to be filed Friday, said Severin Beliveau, the lawyer for the firm.

Beliveau said Maine Liquors decided to appeal because of irregularities in the selection process. He said lawmakers were required to be directly involved but played little, if any, role.

The 37-page appeal alleges the state allowed Martignetti to alter its proposal in violation of state rules, that Martignetti failed to meet all of the state’s requirements, that Maine Liquors filed a stronger proposal and that Maine Liquors submitted more and better references than Martignetti.

MaineCentric of Auburn, another losing bidder, will probably file an appeal, its lawyer, Jotham Pierce, said.

Martignetti received a 10-year lease to store and distribute liquor statewide. The deal, which has not been completed, calls for Martignetti to pay the state $125 million up front, plus additional payments whose size will depend on how lucrative the contract is.

A spokesman for Gov. John Baldacci said the selection of Martignetti was thorough and beyond reproach.

“The selection process was done in an impeccable and fair manner,” spokesman Lee Umphrey said. He said the administration was disappointed by the prospect of appeals, but confident that the choice of Martignetti will hold up.

Larry Benoit, a consultant for Martignetti, said Monday that his client is confident its selection will survive any legal challenges because the state’s award process was rigorous.

The Legislature agreed last year to privatize the state’s wholesale liquor business at Baldacci’s request. That allowed the state to book an extra $125 million in the current budget cycle, helping to balance the books in the face of a $1.2 billion budget shortfall.

At the time, critics argued that the $125 million deal was not a good one because the state gets about $26 million a year from the wholesale operation, which adds up to about $260 million over the 10-year life of the lease.

The Baldacci administration said the state will fare well in the long run, thanks in part to the extra payments that Martignetti has agreed to make, and to the payment of taxes by Martignetti.

Any appeals will be decided by the state, which will appoint a panel of officials to review them. A bidder who loses an appeal to the state can file another challenge with the courts.

AP-ES-01-27-04 0219EST