What CEZ says

CEZ may issue around EUR 500 (zł.1,927) million in eurobonds in 2006 in order to finance its planned acquisitions, at least three of which are targeted at in Poland. The company plans to issue five-year bonds, or alternatively switch to short-term loans if some of the acquisitions are delayed, the firm's officials say. CEZ will also target Hungary, Ukraine and Slovakia, and some Balkan countries in its offensive.

"At this moment we see opportunities in three or four projects, which could result in a cash dearth this year," CEZ's financial officer, Petr Voboril told Reuters. "I have planned into our budget the fact that preparation works on the eurobonds should begin, so we will be able to issue [them] in the middle of the year."

The company claims that, even without the planned borrowing, it could afford to finance takeovers worth EUR 3 (zł.11.5) billion from its own funds over the next five years.

In December 2005 CEZ made offers to purchase, electricity producers Elektrociepłownia Skawina and Elektrociepłownia Chorzów Elcho, both worth, according to analysts, between $0.5 (zł.1.6) and $1 (zł.3.2) billion.