In the interview for HN daily Martin Riman, Minister of Trade and Industry, stated among other things that for the moment he doesn’t see any strategic investor to whom they could sell CEZ stake. Regarding the sale of smaller stake of some 7%, the government should definitely decide about the form shortly. Riman doesn’t see Russian investors as an obstacle in connection to sale of 7% stake. He reiterated his last week stance against decision of EC regarding legal unbundling of generation, transimission and distribution and sees negative consequences of such a step in willingness to invest into modernization of the grid.
Our view:
We see not really new information in the interview. Minister just reiterates his view that has been presented several times, therefore we would see it as neutral and expect that this week trading will be more and more affected by expectations regarding Thursday’s 4Q06 results.