Czech Equity Daily: 09/09/10; CEZ, Unipetrol, ECM

Index PX: 1,136 points (down 0.8% d/d); volume: CZK 1,229m (USD 63m)

CEZ: Neutral (Analyst: Bohumil Trampota)

CEO of CEZ said for Hospodarske noviny daily that a period of consolidation and exploitation of investments is now ahead, adding that possible acquisitions are determined by conditions on the market. He also confirmed CEZ's plans regarding the development of nuclear power projects. Similar information was provided with the release of 1H10 results. The company once again confirmed that it would limit its expansion and focus on the consolidation of current activities.

Unipetrol: Neutral (Analyst: Bohumil Trampota)

According to a press release, Levos Limited increased its stake in Unipetrol from 0% to 5.05% as at 7 September.

ECM: Not rated (Analyst: Pavel Ryska)

A general meeting of the bondholders of ECM Real Estate Investment is held in London today 9 September. The key item on the agenda is vote on early redemption of bonds as a result of a breach of bond covenants. An approval of this item by the majority of bondholders would increase the probability of the company's bankruptcy. The company has been in the red since 2008 (in 2Q2010 it was a net loss of EUR 36m). Previously, bondholders rejected early redemption of bonds in May this year. Early repayment would probably force the company to dispose of its assets at low prices and the bondholders alone would receive only a fraction of their investments. Another important item on the agenda is update by the company's management regarding the financial situation of the company and vote on approval of the sale of some assets. The general meeting will have a quorum if it is attended by bondholders holding at least 50% of the value of outstanding bonds.

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