Bloomberg News

CEZ Nears 6-Month High as Global Rally Offsets Dividend Concern

February 13, 2012

Feb. 13 (Bloomberg) -- CEZ AS, the biggest power utility in the Czech Republic, gained to near a six-month high as austerity plans approved by Greece boosted demand for riskier assets worldwide, outweighing concern the company may cut its dividend.

State-run CEZ increased 1.9 percent to 820 koruna by 12:03 p.m. in Prague, 3.9 koruna shy of 823.9 koruna reached on Feb. 8, which was the stock’s highest intraday price since Aug. 8.

Global stocks advanced after passage of the Greek austerity bill fueled optimism that the country will secure a second aid package. CEZ advanced even after Czech Industry and Trade Minister Martin Kuba said yesterday that the company should finance the planned construction of new nuclear reactors on its own even if it requires reducing the dividend payout.

--Editors: Linda Shen, James M. Gomez

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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