Treasury grants Iberdrola exclusive rights in G-8 sale

The Treasury has chosen Spanish power utility Iberdrola to discuss the purchase of a strategic stake in Poland's largest electricity supplier, the northern G-8 Group. "Iberdrola has been granted exclusive negotiation rights until September 14 to buy eight electricity distributors grouped under the G-8 cluster," the Treasury said in a statement yesterday. The G-8 Group supplies 16% of the country's power needs, providing electricity to some 2.6 million customers. The company's turnover last year was zl.3.3 billion. Iberdrola is facing competition in its bid for a 25% stake in the G-8 Group from three rivals, Electrabel of Belgium, German giant E.ON, and a consortium led by telecom group Elektrim. The stake is valued by analysts at roughly $400 million, although rumors suggest that Iberdrola increased its offer to well above this figure. Jacek Walczykowski, vice president of Elektrim, is reported by the Polish Press Agency (PAP) as saying that if the rumors are confirmed that Iberdrola received exclusivity among the four bidders thanks to the chance to improve its offer, than Elektrim might take the matter to court. (Prawo i Gospodarka, p. 2; Reuters) P.W.