Greece to break up state power company by 2016, responding to rescue lenders' demands

ATHENS, Greece – Greece’s conservative-led government has announced plans to break up the state-run Public Power Corporation by 2016, as part of a privatization program demanded by the crisis-hit country’s creditors.

Government spokesman Simos Kedikoglou said Wednesday that about 30 per cent of PPC’s resources would be spun off to create a rival company, while the company-owned transmission operator, Admie, would also be sold.

Shares of PPC were up 5.1 per cent on the Athens Stock Exchange midday Wednesday, with investors buoyed by a sovereign rating upgrade by Fitch from CCC to B- on Tuesday, pushing the bourse’s index up 2.38 per cent to 1,099.05.