PSEG withdraws from privatization of energy firm Stoen

American company PSEG, one of four companies interested in the privatization of Warsaw's energy distributor Stoen, has withdrawn from the bidding process. PIM, the consulting company charged with managing the privatization process, announced PSEG's withdrawal last Friday. The potential American investor changed its mind due to a new global strategy which foresees expansion on home turf following the fall of Enron. PSEG already owns a stake in thermo-electric power station Elektrocieplownia Skawina and has built a similar plant in Chorzow. A fast total withdrawal from the Polish market seems impossible, due to the privatization contract with Elektrocieplownia Skawina. The State Treasury now has to choose among the three potential investors left, namely German RWE (which will carry out due diligence on Stoen on April 22), France-based EDF and Electrabel of Belgium. The highest initial offer was zl. 700 million for a 25% stake in the Polish company, an offer believed by many analysts to be much too high. (Puls Biznesu, p. 5) A.K.