German E.ON looks for reduction in price of G-8 group

The Wall Street Journal (WSJ) has reported that German concern E.ON is trying to renegotiate the price for a stake in the G-8 group with the Treasury Ministry. Previously, the price for the group offered by E.ON was euro 1.7 billion, or euro 1.2 billion for a 60% stake. A similar price was offered by El-Dystrybucja, controlled by private entrepreneur Jan Kulczyk. Due to the deteriorating economic situation, as well as the weakened financial condition of distribution companies, the price offered for the G-8 group has for some time been deemed too high. Therefore, the WSJ's reports came as no surprise to most observers. The Journal quotes a source close to the transaction as unofficially saying that E.ON intends to lower the price for the G-8 group. The exclusivity period for the German concern expires on September 9. The strategy E.ON is using in the transaction seems to be yielding very good results - they refused to co-operate with Jan Kulczyk, patiently waiting for El-Dystrybucja's exclusivity period in negotiations to expire. Now, as the Polish company has failed to sign a transaction with the Treasury Ministry, it is E.ON that is likely to set its own terms and Treasury Minister Wieslaw Kaczmarek has little choice in the matter. (Puls Biznesu, p. 4) A.Z.