In a TV Prima interview the head of the Anti-Monopoly Office J.Bednar said yesterday evening that the Office will not require a new valuation of the distributors to be acquired by CEZ (previously, the Office asked for the valuation to decide whether the purchase prices do not represent a state subsidy to CEZ). The decision with regard to the transaction prices should be made in coming days, TV Prima informed.
At the moment it is completely unclear what decision the Office would take. Should it declare the prices to be a state subsidy (the Office reportedly claimed the price should be at CZK 50 bil. level, instead of CZK 32 bil.), legal disputes will likely follow, since CEZ claims that the Office does not have the right to dispute the court-sworn expert made valuation. Should the Office take an opposite stance, it would be positive.
But the Office has still to decide on CEZ`s appeal to its decision regarding the planned sector restructuring (i.e., CEZ must sell three minority and one majority stake in the distributors during one year after it acquires the eight stakes in the distributors from the state).
Separately, several other CEZ power plant unions joined the unions at the two nuclear power plants and declared a strike alert. We still do not expect a strike, though.
As expected, EGM approved Supervisory Board changes, an amendment of a management option program, and divestiture of a small heat producing plant yesterday.
Jiří Soustružník