High investment cost forces PGNiG out of G-8 bid

Confirming earlier reports, Polish Oil and Gas (PGNiG) has announced that it is backing out of an Elektrim-led consortium bidding for a 25% stake in the eight northern energy plants that make up the G-8 Group. According to PGNiG spokesman Igor Wasilewski, the company has withdrawn from the consortium because of the high cost of the stake. Fuels company PKN Orlen, another member of the consortium and also rumored to be considering withdrawing, has not made a decision on the matter yet, although it has admitted that the $500 million price tag has diminished its interest in the investment. The consortium obtained exclusive negotiating rights for the purchase of the G-8 stake after it raised the offer price from around $400 million to some $500 million. (Parkiet, p. 4) A.Z.