Industry Minister M. Urban reiterated that he would prefer CEZ to use its free cash for expansion (e.g. acquisitions in Slovakia and Bulgaria) and that it should pay only 20% out of its consolidated 2003 net profit in dividends, Reuters reported yesterday (POR was 32% in 2002). Mr. Urban also said that CEZ will not overpay for Slovenske elektrarne, the dominant Slovak electricity producer, as it wants to avoid any worsening of its investment ratings. This is in line with our opinion that CEZ should not bid aggressively for the highly levered SE - a possible, but still undecided, state bailout would, of course, increase the valuation of the equity. He also said that CEZ will not be fully privatized until at least 2006 but that a further consolidation of the European power market afterwards is inevitable. The state has not ruled out the idea of floating a 16% stake, but it is currently not on the agenda. According to previous indications, the decision in this matter could be made in Q1 2004.