Initial bidders may be invited back for G-8 purchase talks

Treasury Minister Wieslaw Kaczmarek said at a news conference yesterday that he does not intend to extend Elektrim's right to exclusive talks on purchasing a stake in the G-8 power group. According to unofficial information, Elektrim was prepared to pay $503 million for a 25% stake in the northern group of power companies, which supplies 16% of Poland's power needs. Elektrim had until last Friday to complete talks with the G-8 labor unions, but failed to reach agreement on a number of issues, including guaranteed employment periods. Kaczmarek said he may restart talks with the three other potential investors who initially sought the G-8 stake, namely Iberdrola of Spain, Electrabel of Belgium and E.ON of Germany. Through the acquisition Elektrim would have gained a strong position on the power distribution market. But investors had been concerned that the deal might have put further strain on Elektrim's finances. (Gazeta Wyborcza, p. 21; Reuters) M.T.K.