11 October 2002 – The sale of a 25 per cent stake in Poland’s G-8 group of electricity distribution companies continues to be unresolved after all but three of the original six bidding companies have dropped out.

The sale, which was launched two years ago, is for the stake in G-8, which has a 17 per cent share in the Polish power distribution market.

Only E.On, Electrabel and local entry, El-Dystrybucja, have declared a continued interest in the deal. Despite an extension in its exclusive rights for negotiations, El Dystrybucja, controlled by Kulczyk Holding, has failed to strike a deal with the Ministry of the Treasury. The sale of a majority stake in G-8 looked almost completed last month when Poland’s Treasury broke off talks with E.ON following the German company’s reduced bid (reportedly 40 per cent down on the original ?1.2bn offered).

The government has put G8 up for sale to generate revenue. Poland’s Treasury minister said in June that he expects to raise $1.56bn from the sale of G8, Gdansk refinery and Stoen electricity distributor.