El-Dystrybucja given more time in talks over G-8 group

El Dystrybucja has not yet managed to settle the details of its social package with the trade unions of the G-8 group of power plants. On Saturday, the exclusivity period ended for the investor's negotiations in the matter of the G-8 share purchase. Treasury Minister Wieslaw Kaczmarek has extended the exclusivity period for El-Dystrybucja - belonging to Kulczyk Holding (99% stake) - for the second time, without giving a reason for his decision. According to reports in Rzeczpospolita, El-Dystrybucja has agreed the conditions of the contract with the Ministry. The latest talks were related to the social package but were unsuccessful, hence the investor's application to the Treasury Ministry for an extension. Formally, even without the package, the investor could finalize the transaction with the Ministry, but is nevertheless attempting to reach a settlement with the employees. "We will be co-operating with these people in the future and would not like to start from a conflict situation," said an anonymous Rzeczpospolita source close to the negotiations. According to him, the package could be agreed within 2-3 weeks. Unofficially, El -Dystrybucja assessed the group's value at $2 billion and the State Treasury is selling up to 85% of its shares. (Rzeczpospolita, August 10-11, p. B2) P.W.