Article: COMMISSION EXTENDS EXISTING AID PROBE INTO BABCOCK WILCOX ESPANA.(Brief Article)

The European Commission on June 13 deepened its state aid investigation, originally launched in April 1998 and extended for the first time in July 1999, to also examine the sale by the Spanish authorities of Babcock Wilcox Espa[currency]a to Babcock Borsing AG. This latest probe will examine the terms of the privatisation of the Spanish power plant company. In February 2000 its owner, the Spanish public holding SEPI has signed a contract with Babcock Borsing AG agreeing to sell, for a price of Euro 45 million, the shares of a new company to be created, NewCo, to which certain selected assets of BWE will be contributed. BWE shall also contribute to NewCo 650 workers. ...

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