CEZ has confirmed that it is one of the eight bidders that submitted final bids for a 67.5% stake in Romanian distribution company Electrica Muntenia Sud, which serves 1.1 million people. The other bidders include RWE, Gaz de France, Iberdrola, Union Fenosa, Enel, EVN and AES. Given the tight competition we would expect the price paid per customer to significantly exceed the EUR153 that CEZ paid for Electrica Oltenia. The Romanian Government earlier said that it expects to receive c. EUR500m, which implies c. EUR450 per customer. We would see the news that CEZ submitted a bid for the distribution company as neutral so far. We reiterate our Buy recommendation.