Adviser recommends consideration of all bids for G-8

Despite significant valuation differences, all four offers for purchasing the G-8 group of energy companies have been recommended by the Treasury's adviser on the sale, Arthur Andersen, according to unofficial sources quoted by Puls Biznesu. The difference between the highest bid, from Electrabel of Belgium, and the lowest, from Iberdrola of Spain, is reported to be as much as $110 million. However, Puls Biznesu points out that the companies offering the highest price for the initial package of 25% of shares are proposing to pay less to increase their stake later on. Another major difference relates to the scheduling, with some applicants prepared to make a large initial payment, which would help the cash-strapped Treasury deal with its present difficulties, while investing less in G-8 later. It seems likely that before making its choice the Treasury will ask all potential purchasers to submit more detailed explanations of their offers. (Puls Biznesu, p. 4) M.T.