The privatization of PHS, today Mittal Steel Poland, may end in the arbitrage court in Paris. Pawel Szalamacha, the deputy Minister of the Treasure expects it although he hopes the issue may be solved otherwise. The Ministry of the Treasure wants to renegotiate the price of the 25 percent stake of PHS. If Arcelor Mittal disagrees with new conditions, the stake may be sold on the Warsaw Stock Exchange. Arcelor Mittal does not agree either for the listing or for renegotiations.
“Introducing the 25 percent stake on the stock exchange although it is guaranteed to Arcelor Mittal in the privatization agreement, would violate the contract”, the representatives of the steel giant said in a statement.
The investor pledged to buy the stake in the call option.
According to the privatization agreement, the state pledged to sell the shares till the end of this year at PLN 1 (EUR 0.257) a share, or for PLN 67m. At the end of 2004, Mittal estimated the ‘economic net value’ of the Polish company at USD 1.93 billion. The listing would be possible only if the investor did not buy the stake.
If the Ministry of the Treasure sells the stake at the agreed on price, it faces allegations from trade unions and politicians.
(PLN 1 = EUR 0.257)