Czech minister says favours CEZ flotation - paper

...budget, Industry Minister Martin Riman said on Tuesday in an interview with business daily Hospodarske Noviny.

The government has said several times it plans to sell up to a 7 percent stake in CEZ to raise 31 billion crowns ($1.42 billion) for this year's budget.

But some ministers have recently voiced a concern that Russian investors could use the sale to gain a strong foothold in the company, which they feel is strategic and must stay away from Moscow's influence.

Riman said he was not concerned about the prospect, noting that one third of the firm is already freely floated on the market, and that the main criteria for the sale should be maximising revenues for the state.

"I'm not even sure how the government could direct the sale of shares to a pre-agreed partner. It should go (be sold) quickly through the market for the highest bid," Riman said.

The state holds 68 percent in the power company, which has a market capitalisation of $25 billion and is the most valuable Czech asset still awaiting privatisation.

Riman also said that he was not against the sale of brewer Budejovicky Budvar, known for its Budweiser brand beer.

Several Czech governments have mentioned the possibility of selling off the brewer but never followed through.

Many Czechs -- the world's biggest beer drinking nation per capita -- cringe at the thought of losing such a piece of their national identity.

"The Budvar name is worth 20 or 30 billion crowns. I don't see a reason why the state should not sell the brewery. To speak of the 'family silver' has lost its weight," Riman said.

Cabinet has not said it was mulling the sale of Budvar, and last week Finance Minister Miroslav Kalousek said he did not expect any other major selloffs this year.

But the sale of Budvar would be likely to attract the world's top brewers and would also give U.S.-based Anheuser-Busch a chance to stop a constant flow of litigation with its small Czech rival over who can sell beer as the real Budweiser.

[PRAGUE/Reuters/Finance.cz]