Company envisions Bohemia, Hungary, Poland in 'super region'

As the first batch of former communist states prepares for European Union entry, Austrian multi-utility Energie AG OberOsterreich is gearing up to create a "super region" of its own, using south Bohemia as a launchpad. The state-owned Linz-based company, which is active in water, heat, electricity, waste, gas and consultancy, is looking to develop similar activities in neighboring Bohemia, Hungary and eventually Poland. "We're in talks with one big German company that has shares in several Czech water and refuse companies. ... We'd possibly [be interested] in their Hungary holdings, too," a company insider said. "Due diligence is in process at the moment. Only after due diligence [is completed] will we make an offer to the shareholder." While the source declined to identify Energie's negotiating partner, industry observers say there's only one possible candidate: RWE Umwelt, the waste-management and recycling unit of German utility RWE Group, which has already confirmed that it wants to get rid of its Hungarian and Czech operations. The move marks the latest stage in Energie's second foray into the Czech Republic. The Austrians had previously held ownership interests in Czech electricity distribution companies -- south Moravia's Jihomoravska energetika (JME) and south Bohemia's Jihoceska energetika (JCE) -- but sold them last year to E.on of Germany. The Upper Austrian government, Energie's majority owner, found it difficult to square the Alpine state's nuclear-free policy with the Czech Republic's Temelin nuclear power station. Energie, however, re-entered the Czech market last November when it acquired 95 percent of south Bohemian water company VAK Jizni Cechy and 58.7 percent of water company VAK Beroun, just south of Prague.