Elektrim considers selling or pledging shares in power group ZE PAK

Maciej Radziwill, President of Elektrim, stated in an interview with Reuters on Wednesday that his company is considering seeking a partner for Power Plant Conglomerate PAK (ZE PAK), the company's investment in the power industry. "In a more radical scenario it is possible that we sell or pledge the shares in this company. However these solutions require talks and agreements with the State Treasury and changes to the privatization ag reement," he said. The President discussed the recent talks with the T reasury Ministry on enabling sales of the PAK share package through the Ministry and finding a partner. According to the privatization agreement, Elektrim cannot sell its PAK shares until 2005 and in the event that the Treasury Ministry sells a further block of shares in ZE PAK, Elektrim has the right of first refusal. ZE PAK is the number four power producer in Poland, with a 12% market share. Elektrim may be forced to sell its 38.5% stake in the conglomerate due to its financial problems. A consortium of banks, including the European Bank for Reconstruction and Development (EBRD), withdrew from a project to build a new power block in ZE PAK worth $392 million, while Elektrim announced that there are entities interested in making resources available for completing the investment. (Parkiet, p. 3, Rzeczpospolita, p. B1) P.W.