Companies with 1,000 employees in the EU and 150 in two member states have to set up councils.Referring to a council set up at Hanson Brick, Allan Black, national officer at the GMB general union, said he was pleased the group had "recognised the value of this international dialogue". Initially reluctant to establish European-wide systems of consultation for employees, Hanson has decided to create councils in its operating companies before a deadline expires in 10 days. True, this is partly down to the depressing effect his initial proposals have had on the Grid's shares. The "market-based" value of its regulated assets, even if both sides agree the telecoms business Energis is worth nothing, is pounds 4bn.

The Grid may have less to lose than BT or British Gas from going to the MMC. But it should not count on the threat extracting more than a token concession.. Hanson Group, one of the Conservative Party's biggest financial backers, yesterday ignored the Government's opt-out from the Maastricht Treaty and included British workers in plans for European works councils. So he is unlikely to be in the mood to make big concessions.In any event the Grid and the Prof appear to be nudging closer together on valuation and estimates of efficiency gains. Notwithstanding the higher calibre of the Grid's correspondents, it should not count on doing any better.