Identifier
Created
Classification
Origin
08VIENNA956
2008-07-03 15:28:00
UNCLASSIFIED
Embassy Vienna
Cable title:
HUGE INVESTMENT BY AUSTRIAN ENERGY FIRM "VERBUND" IN
how-toVZCZCXRO9431 RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHVI #0956 1851528 ZNR UUUUU ZZH R 031528Z JUL 08 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC 0495 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE RUEHAK/AMEMBASSY ANKARA 1193 RHEBAAA/USDOE WASHDC
UNCLAS VIENNA 000956
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN EINV ENRG EPET AU
SUBJECT: HUGE INVESTMENT BY AUSTRIAN ENERGY FIRM "VERBUND" IN
TURKISH ELECTRICITY SECTOR
UNCLAS VIENNA 000956
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN EINV ENRG EPET AU
SUBJECT: HUGE INVESTMENT BY AUSTRIAN ENERGY FIRM "VERBUND" IN
TURKISH ELECTRICITY SECTOR
1. On July 1st, Verbund, the largest Austrian electricity provider,
working in a 50/50 consortium with the Turkish company Sabanci, won
the bidding in tenders to privatize the state-owned Turkish
electricity provider "Baskent EDAS," paying $1.2 billion for the
company. One day later, Verbund lost the bidding for a second
Turkish electricity provider to be privatized, Sakarya, to the Czech
firm CEZ. The bid process was managed by the Austrian corporate
finance advisory firm "Raiffeisen Investment," which has played a
significant role in privatization processes in Eastern and Central
Europe.
2. Verbund Board member Christian Kern said that the deal is the
company's biggest acquisition ever and will make Verbund the largest
private energy supplier in Turkey. Together with its Turkish
partner, Verbund is planning to invest $6.5 billion in new power
stations and is aiming for a market share of 10-15 percent in the
Turkish energy market. Verbund has also not ruled out participation
in planned power supply privatizations in Turkey next fall.
3. Background: Verbund is the second largest energy company in
Austria after oil and gas giant OMV, and specializes in electricity
production and supply. The company has around 2,500 employees, and
sales accounted for $4.2 billion in 2007. Verbund's strategic goal
is to make Turkey a focus of its foreign activities (so far mainly
in France and Italy). The company is 51% state-owned due to a
constitutional law in Austria that requires the government to hold a
majority of shares in electricity providers.
4. Comment: The purchase shows that Turkey, and particularly its
energy market, is increasingly important for Austrian companies due
to its excellent growth potential. In 2006, OMV (with another
Turkish partner) acquired the majority in the Turkish gas station
provider Petrol Ofisi. Turkey's increasing role as regional "nerve
center" in the energy sector, including in connection with the
Nabucco pipeline, is another vital factor in Austria's intensifying
economic ties with this country. End comment
GIRARD-DICARLO#
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN EINV ENRG EPET AU
SUBJECT: HUGE INVESTMENT BY AUSTRIAN ENERGY FIRM "VERBUND" IN
TURKISH ELECTRICITY SECTOR
1. On July 1st, Verbund, the largest Austrian electricity provider,
working in a 50/50 consortium with the Turkish company Sabanci, won
the bidding in tenders to privatize the state-owned Turkish
electricity provider "Baskent EDAS," paying $1.2 billion for the
company. One day later, Verbund lost the bidding for a second
Turkish electricity provider to be privatized, Sakarya, to the Czech
firm CEZ. The bid process was managed by the Austrian corporate
finance advisory firm "Raiffeisen Investment," which has played a
significant role in privatization processes in Eastern and Central
Europe.
2. Verbund Board member Christian Kern said that the deal is the
company's biggest acquisition ever and will make Verbund the largest
private energy supplier in Turkey. Together with its Turkish
partner, Verbund is planning to invest $6.5 billion in new power
stations and is aiming for a market share of 10-15 percent in the
Turkish energy market. Verbund has also not ruled out participation
in planned power supply privatizations in Turkey next fall.
3. Background: Verbund is the second largest energy company in
Austria after oil and gas giant OMV, and specializes in electricity
production and supply. The company has around 2,500 employees, and
sales accounted for $4.2 billion in 2007. Verbund's strategic goal
is to make Turkey a focus of its foreign activities (so far mainly
in France and Italy). The company is 51% state-owned due to a
constitutional law in Austria that requires the government to hold a
majority of shares in electricity providers.
4. Comment: The purchase shows that Turkey, and particularly its
energy market, is increasingly important for Austrian companies due
to its excellent growth potential. In 2006, OMV (with another
Turkish partner) acquired the majority in the Turkish gas station
provider Petrol Ofisi. Turkey's increasing role as regional "nerve
center" in the energy sector, including in connection with the
Nabucco pipeline, is another vital factor in Austria's intensifying
economic ties with this country. End comment
GIRARD-DICARLO#