The GSM of Vistula Wolczanka (VW) cloths group decided to merge with jewelry distributor Kruk.
Shareholders welcomed the news, the stock of both companies jumped – VW 16.4 percent, Kruk 7.2 percent. Several days ago, not all shareholders agreed for the parity of exchanging Kruk shares for VW shares amounting to 2.4. They changed their mind, however. W.Kruk will be absorbed by VW and disappear from the Warsaw Stock Exchange till the end of this year. Results of the companies which will operate as Vistula Group, will be consolidated next year.
The only problem of VW is its credit it took to buy W.Kruk. Till the end of
March 2009, the company needs to pay back PLN 250m to Fortis. The management
would like to find a consortium of banks and to prolong the deadline.