The diversified utility is talking to several potential buyers of its Kloeckner & Co steel trading unit, while negotiating separately to sell its 30 per cent stake in Kuehne & Nagle AG to the Swiss shipping group's founder."We have decided that the logistics activities are no longer part of Viag's core compentencies," chief executive Wilhelm Simson said in the text of remarks to be delivered at a news conference.

However, he indicated that it could be some time before both divestment are complete.

"We will not sell off our (Kloeckner) holding at just any price," Simson said, adding that there would be no time pressure to reach an agreement on Kuehne & Nagel.

Expanding on this, Simson told Reuters in an interview just ahead of the news conference: "I think we will have Klockener in good hands in the early part of1999."

Founder Klaus-Michael Kuehne has the right of first refusal on the Viag stake.

After the divestment, Viag expects to have two core divisions contributing equally to group results.An industrial sector would include chemical makers SKWTrostberg AG and Th. Goldschmidt AG, plastic bottle maker Schmalbach-Lubeca AG, VAW Aluminum AG and Gerresheimer Glas AG. (Reuters)Energy and telecommunications would include electric utility Bayernwerk AG and Viag Interkom AG, its venture with British Telecommunications Plc and Norway's Telenor A/S.