Slovakia wants to settle dispute with Enel over SE sale by end-2011.

By bne IntelliNews June 23, 2011
Slovakias privatisation agency FNM wants to settle the dispute with Italian energy group Enel over the sale of a majority stake in the countrys dominant power producer Slovenske Elektrarne (SE) by the end of 2011, informed. The state and Enel have been bickering over the actual size of SE assets at the time of the sale with Enel demanding back some of the money it spent on the purchase. Enel bought a 66% stake in SE in 2006 with a EUR 839mn bid. Later the Italian company said SE assets were overvalued at he privatisation papers and demanded back SKK 9bn (about EUR 300mn). Enel demands were supported by an audit made by Deloitte & Touche on SE that showed that at the time of the sale SE had lower value. Deloitte & Touche said the state should pay Enel SKK 2.5bn. At the same time FNM called for an additional payment of SKK 2.5bn. The previous government of Robert Fico tried to settle the dispute with the so-called zero variant" under which none of the parties should pay the other any additional money but the coalition failed to reach agreement within itself. The new management of FNM doest not favour the zero variant, while Enel reportedly agreed. FNM has called a tender to select an international advisor to asses SE financial statements as of April 26, 2006 before the sale. The bids will be submitted by end-July 2011 and the new assessment of the deal is to be completed by end-2011. SE operates two nuclear power plants, two thermal power plants and 34 hydroelectric power plants with installed capacity of 5,737.24 MW. The state owns the remaining shares in SE.
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