Israel Electric Corporation (IEC) (TASE: ELEC.B22) has frozen plans talks to collaborate with private power producers until it obtains guidelines from Antitrust Authority director general Ronit Kan, imply IEC's responses to questions by "Globes".
Sources inform ''Globes'' that IEC executives met Kan on Sunday to show her their general plans and intentions for collaborating with private power producers. She asked them for information about the proposed structure of the collaboration, after which she will review the material and make a decision.
IEC said in response, "The company's management asked for the meeting in order to obtain guidelines from the Antitrust Authority regarding business ventures in Israel, particularly with private power producers. Until we obtain these guidelines, we will suspend activity on this matter."
"Globes" was the first to report that IEC revenue growth strategy includes the establishment of subsidiaries that will collaborate with private power producers. IEC employees will own 15% of these subsidiaries. IEC wants to provide the private power producers with engineering, procurement and construction (EPC) services in exchange for either up to a 51% stake in the joint ventures or payment for services rendered.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2008
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