As expected the Cabinet gave CEZ exclusivity in the sale of the state’s 55% stake in Severoceske doly today. CEZ now has 90 days to present its bid. CEZ already owns 37% in SD. CEZ said that it is prepared to file a bid for SD. While we would view a CEZ purchase of SD as positive for CEZ from the strategic point of view, we believe that CEZ is not under any pressure to pay a high price for SD, in particular as it has already secured long-term coal supply contracts with both SD and Mostecka uhelna.