Treasury to begin talks with G-8 bidders on Monday

The State Treasury will on Monday begin individual talks with the four parties bidding in the privatization of the G-8 Group of energy distribution companies. The talks, which are scheduled for completion on August 1, are with Electrabel of Belgium, E.ON of Germany, Iberdrola of Spain, and the Elektrim, Kulczyk Holding, PKN Orlen and Polish Oil and Gas (PGNiG) consortium. According to unconfirmed reports, the final offers by the four to buy a stake in the G-8 Group should be filed with the Treasury by August 3. The Treasury decided to hold the talks with the potential investors after Arthur Andersen, its adviser on the G-8 privatization, made a recommendation that all four be considered, despite the wide differences in their bids. The offers for an initial 25% stake in the G-8 Group range from $350 million up to $460 million. According to Puls Biznesu reports quoting unofficial sources, the talks will focus on how the bidders intend to obtain a majority stake in the G-8 Group. (Puls Biznesu, p. 4) P.J.