NatPower pulls out of Polish deal

NATIONAL POWER yesterday said that a lack of financial guarantees had prevented it from signing a deal to take a 20 per cent stake in Polish state power complex PAK.

"There were insufficient safeguards to make the investment," a National Power spokesman said. National Power had offered $125m for the 20 per cent stake in a deal that was initially expected to be signed before Christmas.

The spokesman said the deal could be revived only if Poland could provide reassurances on the structure of markets and returns for National Power. The British company is believed to want pricing guarantees and purchase agreements extending over the next five years.

Poland's treasury ministry said last week that the deal foundered after National Power presented additional conditions which were not part of the original agreement.