Iberdrola loses exclusive negotiating rights for G-8

The Treasury Ministry yesterday announced that Spain's second largest power utility, Iberdrola, has lost the exclusive right for negotiating the purchase of a 25% stake in Poland's largest power utility group, G-8. According to sources close to Iberdrola, the Spanish company has failed to reach agreement with the G-8 trade unions on social guarantees for the workforce. The Treasury is now likely to commence negotiations with other companies on the short list of bidders, which include Polish conglomerate Elektrim, E.ON of Germany and Electrabel of Belgium. Market insiders say that the bidders are ready to pay in the region of $400 million for the 25% stake in the G-8 group. (Puls Biznesu, p. 7; Reuters) A.Z.