G-8 privatization: new terms and less union influence

The investors involved in the tender for the privatization of the G-8 group will present the Treasury Ministry with new offers. According to unofficial information, the Treasury has offered new terms and asked bidders to reapply. Electrabel of Belgium, El-Dystrybucja of Poland and E.ON of Germany look set to enter the bidding, but it remains unclear whether Iberdrola of Spain will participate. The most important change affects the pace at which the new investor would take over the capital of the privatized group. Another change means the elimination of the social package for G-8 employees and removing trade unions from having a voice during the talks. The Treasury has also decided to abandon the idea of raising the capital of the G-8 companies, which will allow them to procure a better price for the group. "We have often underlined that the G-8 companies are overcapitalized and financing the investment program with outside capital would make much more sense," said a representative of one of the foreign companies taking part in the tender. (Puls Biznesu, p. 8) M.T.K.