Hungary: E.ON buy-back ‘too costly’ for government
If the reports leaked so far are true, the government will pay 500 millioneuro more for the two Hungarian gas companies of German energy company E.ON than they are actually worth, energy analyst Imre Mártha, the former CEO of the Hungarian Electricity Works (MVM), has said in an interview with news portal index.hu.
A deal to nationalise E.ON’s Hungarian gas business moved closer in December when chairman-CEO Johannes Teyssen signed a letter of intent with Prime Minister Viktor Orbán. Left-wing daily newspaper Népszabadság speculated at the time that the rumoured 800 million euro cost of the sale could be financed with the remaining cash set aside from Hungary’s 2008 International Monetary Fund bailout and a fresh bond issue.
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(Photo: Andras Deak/sxc.hu)
