Romanian Government announced that Enel won a tender for the 67.5% stake in Electrica Oltenia, a electricity distributor with 15% market share and 1,075m customers paying EUR 820m or cEUR1,130 per customer of a 2005 P/E of 49.2. Oltenia’s 2005 sales rose by 40% y/y to EUR391.6 and its net income reached EUR24.7m against a loss of EUR8.3m a year ago. The second was reportedly Iberdrola with a bid of EUR770m. CEZ was also interested in the tender, nevertheless, we highlight that CEZ did not outbid the two bidders as we regard the price of EUR1,130 per customer too high given the price CEZ paid for Electrica Muntenia Sud (EUR217 per customer) despite increasing competition. We see the news as positive and maintain our Buy recommendation for the stock.