Business briefs

Hyundai to build $1.2bn car plant in the Czech Republic; Premier Jiri Paroubek has agreed to set up parliamentary commission on Unipetrol; Swedish broadcaster MTG buys $115m stake in TV Prima; State to sell 56 percent stake in Severoceske Doly to CEZ for $375m; Retailers Tesco (UK) and Carrefour (France) agree to asset swap in Taiwan, Czech, Slovak republics

Hyundai to build $1.2bn car plant in the Czech Republic

The South Korean carmaker Hyundai plans to build a 1.2 billion dollar plant in the Czech Republic aimed at boosting its presence in the European market. The prime candidate site for the plant is Ostrava, the Czech Republic's third-largest city. The target date for the new Hyundai plant to go online is 2008. It should have an annual production capacity of 300,000 vehicles. The plant would create 3,000 jobs directly and twice as many again in the Czech supply chain.

Premier Jiri Paroubek has agreed to set up parliamentary commission on Unipetrol

Prime Minister Jiri Paroubek has bowed to calls to establish a parliamentary commission to investigate the sale of Czech petrochemicals group Unipetrol. The sole bidder in the privatisation tender, PKN Orlen of Poland, paid some 540 million US dollars for the government's 63 percent stake in Unipetrol. A Polish parliamentary commission this month suggested the Czech government could have gotten a much higher price for the company. It also suggested that Czech politicians had accepted bribes for giving PKN favourable conditions, but offered no hard evidence.

Swedish broadcaster MTG buys $115m stake in TV Prima

The Swedish broadcaster Modern Times Group has paid 115 million US dollars for a fifty percent stake in TV Prima, the second-largest Czech commercial station. Apart from its operations in Sweden, Modern Times Group operates television stations in Scandinavia, Russia, the Baltic States, and Hungary.

State to sell 56 percent stake in Severoceske Doly to CEZ for $375m

The government has agreed to sell its 56 percent majority stake in the brown coal mine Severoceske Doly to the state-owned power company CEZ for some 375 million dollars. Once the sale is finalised, CEZ will be 93 percent owner of the coal mine. It is expected buy out minority shareholders in the coming months and to become full owner of Severoceske Doly. Shares in CEZ, a blue-chip company, rose on the news. The ratings agency Moody's raised its long-term financial-strength rating for CEZ from A3 to A2.

Retailers Tesco (UK) and Carrefour (France) agree to asset swap in Taiwan, Czech, Slovak republics

The United Kingdom's Tesco and Carrefour of France - the world's second and third largest retailers -- have announced an asset swap involving stores and operations in the Czech Republic, Slovakia and Taiwan, subject to the usual regulatory approvals. As part of the deal, 11 Carrefour stores in the Czech Republic and 4 stores in Slovakia will be transferred to Tesco. In return, Carrefour will receive 6 Tesco stores and 2 sites in Taiwan. Tesco said the deal is part of a strategic move to strengthen the UK retailer's businesses in Central Europe.