VERBUND: 51 percent participation in Energie AG OÖ

10/13/2000Wien

VERBUND confirms its wish to take a 51 percent capital interest in the business connection Energie AG OÖ and is pleased about the invitation for negotiations announced by the Province of Upper Austria.

According to VERBUND the VERBUND offer reflects the conviction expressed repeatedly by the VERBUND Board of Management: that full use of the existing synergy potentials to the benefit of both companies’ shareholders and the clients will only be possible by merging and not by loose co-operations.

Energie AG OÖ will continue as independent company seated in Linz. In the sales and marketing area its comprehensive know-how could be used. The capacities of the power stations are to be bundled, co-operations for the networks in the 110 kV range are to be intensified.

The focus will be on the following targets:

- formation of an Austrian power group holding a strong position in the liberalized market,

- protecting regional interests and taking staff interests into account,

- strengthening eco-friendly hydropower production,

- strengthening the competitive position of both companies in Austria and abroad, and

- improvement of the going concern values.

The project is to be the basis of a comprehensive Austrian solution and is, therefore, open to other companies in the Austrian electricity industry.