BUSINESSWEEK ONLINE : DECEMBER 18, 2000 ISSUE
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INTERNATIONAL -- EUROPEAN BUSINESS The Chubais-Fyodorov Face-off A plan to restructure electricity monopoly Unified Energy System (UES) pits former privatization czar Anatoly B. Chubais against shareholder rights crusader and former Finance Minister Boris G. Fyodorov CHUBAIS' POSITION: AIM To deregulate Soviet-era monopoly UES in an effort to attract strategic international investors who would pay for a desperately needed overhaul of power plants, lines, and other equipment. PLAN Merge local power stations into 10 to 15 regional generating companies. Free prices for electricity. Gradually sell UES stakes in regional companies to strategic investors. COMMENT ''There are always going to be some shareholders that are dissatisfied...They can sell their shares.'' FYODOROV'S POSITION: AIM To gain greater control over the UES restructuring process as a representative of minority shareholders who fear that Chubais will sell assets at knockdown prices to his friends. PLAN Wants a change in the UES corporate charter to give the board of directors the right to approve or refuse asset sales worth more than 4% of the company's total assets. COMMENT ''Chubais wants to be an oligarch. He wants to sell parts of our company to his friends, and the government doesn't care.'' DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS The Battle for Russia's Electricity Giant (int'l edition) TABLE: The Chubais-Fyodorov Face-off ONLINE EXTRA: Chubais: "My Position on This Is Very Pragmatic" INTERACT E-Mail to Business Week Online

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