Reuters reports that a CEZ privatization condition that forces the successful strategic investor to keep the acquired assets in the sale for ten years has been revised to eight years. Unless this was specifically demanded by some of the bidders, the amendment should have little impact on the tender or its outcome. Reuters also says that the tender winner is to pay for the acquired assets in euros, which is more relevant for the currency market; the stock should not react.
In addition, the Czech Press Agency carries a report today of further privatization conditions that would compel the CEZ investor to purchase 28 mil. tons of Czech coal per year for 15 years, and to produce not less than 51 TWh per year for seven years beginning in 2005. These conditions have been reported before, the stock should not react.
Czech Cabinet discussed the Czech-Austrian Melk agreement (the framework for a bilateral safety assessment of CEZ’s Temelin nuclear power plant) yesterday. Czech Prime Minister Milos Zeman will meet with the Austrian Chancellor Wolfgang Schuessel and the EU Commissioner for Enlargement Gunter Verheugen today, they will discuss Temelin, the Melk process completion, and the completion of the Czech Republic’s energy chapter (toward EU accession).
(Jiri Soustruznik)