Elektrim likely to team up with Endesa to buy G-8

Telecom and energy group Elektrim, planning to spend massively on the purchase of energy distributors group G-8, looks set to join forces with Spanish energy concern Endesa in the first half of June. The alliance will generate the $300 million needed for the purchase of G-8 shares, as well as a further $500 million Elektrim needs for its investment and development plans. The Prawo i Gospodarka daily has learned that the two companies have already discussed forming an alliance, but according to Elektrim sources, several other potential partners are also interested in the deal. In particular, Endesa is likely to face fierce competition from EdF of France and RWE Plus of Germany. Edf has already submitted to the treasury ministry an independent bid for the purchase of G-8, but that offer foundered in the second round of negotiations. Meanwhile, RWE Plus had originally planned to participate in the privatization of three other Polish power companies, distributors GZE and the G-4 group, and producer Stoen energy. (Prawo I Gospodarka, pp. 1,2) J.K.