Energy Minister, Kievenergo Holding: No Need For Kievteploenergo.

Energy Minister Yurii Boyko said on Friday, that there was no need for the creation of a new company, Kievteploenergo, to run the city’s heating system. Yurii Bondar, the Chairman of the board at Kievenergo Holding, who’s subsidiary Kievenergo (KIEN: BUY), currently holds the lease to manage the city heating system, said the creation of a new company for this task makes no sense. Alexander Paraschiy: As we expected (see our KIEN ANB from October 6), the creation Kievteploenergo, the brainchild of Kiev Mayor Leonid Chornovetski, is running into fierce resistance from all sides. It is unlikely that the mayor will be able to get the lease on the heating supplies away from KIEN, which has backing at the national (Boyko) and international (World Bank) levels. We believe that the market has overacted to the news about Kievteploenergo, and the price depression this has caused for KIEN represents a great buy opportunity for the stock.