28 March 2002 – Poland has selected two companies with whom it will negotiate to sell a 25 per cent stake in the G-8 electricity distribution companies – a consortium led by Germany’s E.ON and a local firm El-Dystrybucja, owned by private Kulczyk Holding and the Elektrim conglomerate.
The interests in the northern distributors is worth an estimated $480m and a bidding process last year attracted considerable foreign interest.
The sale was halted when Poland’s treasury ministry announced that chosen bidder Iberdrola had failed to make an offer in time and had lost the right to purchase a 25 per cent share of the country’s largest power utility group.
Talks broke down due to disagreements with the G-8 trade unions on work force guarantees.
Poland’s treasury ministry has shortlisted four international bidders for a stake in Warsaw-based STOEN distributor, including state-owned Electricite de France (EdF), Electrabel of Belgium, U.S. PSEG and Germany’s RWE Plus.
The previous government launched both sales before it was replaced last October. The current left-wing cabinet is thought not to favour further privatization and plans to freeze sales and proceed with a restructuring within the power sector ahead of European Union accession.