The Czech daily newspaper HN reports that CSFB is talking with some of the companies interested in CEZ direct privatization on the behalf of the Ministry of Industry. Electricite de France, RWE, International Power, Iberdrola, Enel, and E.ON have reportedly expressed interest in the sale. Czech officials have revealed little about the talks, which has produced much market speculation. While the above companies are credible investors, legal challenges cannot be ruled out if the results of the tender are questioned. A direct sale is in our view unlikely before the June general election, due to transparency concerns and the very strict privatization conditions.
(Jiri Soustruznik)