Greece won't sell a planned 17% stake in the country's dominant power company at a bargain price, the prime minister said Friday, adding that the further privatization of the utility represents an opportunity to find new strategic partners for the company.

Speaking in parliament, Prime Minister George Papandreou's remarks follow a government announcement last month that it will sell down its majority stake in former monopoly Public Power Corporation SA (PPC.AT) next year to reduce Greece 's towering public debt.

"We are not simply counting on [the stake sale] for just narrow financial reasons," Papandreou said in response to a question by an opposition lawmaker. "I don't deny that there is also a financial imperative. But, as you correctly stated, it is not our first priority, nor, should it be sold at a bargain basement price."

A year ago last May, Greece narrowly avoided default with the help of a EUR110 billion bailout from the European Union and International Monetary Fund in exchange for a series of fiscal and structural reforms to cut its budget deficit and overhaul its hidebound economy.

Since then, the Greek government has cut its deficit by about a third--to 10.5% of gross domestic product last year--but is struggling to convince investors that it can service its giant public debt, which is seen peaking at close to 160% of GDP in 2013.

To assuage those concerns, Greece announced in April the first steps towards an ambitious five-year privatization program that it hopes will raise EUR50 bilion by 2015.

Among its plans is to reduce the government's current 51% stake in PPC to 34%, which would still give the state a controlling minority stake in the company. PPC has a total market capitalization of about EUR2.6 billion, implying that a 17% stake could raise about EUR400 million from the sale.

PPC shares currently trade around EUR10.15 per share, down from a 52-week high of EUR13.87 per share.

However, the company's militant workers' union, Genop, opposes further privatization and has threatened to call rolling strikes as early as this month when details of the government's plans are expected to be presented to parliament.

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