Elektrim gains G-8 extension but faces funding problem

The Treasury has confirmed it has given an Elektrim-led consortium more time to negotiate the acquisition of a stake in energy group G-8. Elektrim and it s partner El Dystrybucja now have until November 30 to negotiate the purchas e of a 25% stake in the northern power group. According to Gazeta Wyborcza, Elektrim needed more time to reach agreement with G-8's trade unions. Howeve r, Elektrim's share price plunged 10.7% on the Warsaw Stock Exchange (WSE) i n the wake of comments by experts that the company may not have enough money to cover the purchase. BDM PKO BP analyst Radoslaw Solan points out that aft er the recent withdrawal of several members of the consortium, including Pol ish Oil and Gas (PGNiG) and PKN Orlen, Elektrim may be forced to cover more than the initially planned one-fourth of the estimated $500 million total co st. Gazeta Wyborcza suggests that the solution for Elektrim may lie in a bon d issue, or in forming a new consortium comprising companies that were rejec ted during the first phase of the G-8 bid, namely Iberdrola of Spain and Ele ctrabel of Belgium. (Gazeta Wyborcza, p. 28; Prawo i Gospodarka, pp. 4, 10; Reuters) M.T.K.