Final Word from Wednesday, August 2, 2006
Czechs are losing their feel for the Slovak language, but Labor Minister Zdeněk Škromach speaks fluent J&T. Škromach will ask the cabinet this morning to swap 14.2% of PRE power company with J&T of Slovakia for 0.5% of ČEZ. It's one of the biggest privatization deals of the year, but no one else was invited to the table, and hardly any notice of the Kč 2.5bn transaction was given. Furthermore, the swap price was set by a little-known appraisal firm, Euro-Trend. (Echoes of Bohuslav Sobotka's choice of Kaufmann, Kienbaum et al.) J&T signaled last year that raising its stake in PRE was a key part of its plan for a vertically integrated energy concern. If approved, J&T's share of PRE will rise to 48.2%. Although the majority is held by the city of Prague and EnBW, this should probably be treated as a hostile takeover of one of the country's largest energy companies, assisted by the cabinet itself.[Czech Republic Pražská energetika holding Honor Invest Eurotrend Dr. Kaufmann & Partner Hofírek Energie Baden-Württemberg Finance Minister ministry]