Polish Business Survey
Fishing industry in deep water
State fisheries have until the end of next month to pay Russian authorities almost PLN10m for the right to fish in the Bering Straight. If they fail to pay, which is likely, the Russians will withdraw the right to fish in their waters and this, for the Poles, could lead to bankruptcy.
Last year three State owned fishing companies fished around 14,000 tons of fish in the Bering Straight. This amount is well short of the 40,000 ton limit that a five year old agreement between the two countries allows. Of the three companies owing the money only Gdynia based Dalmor is likely to pay. The other two companies, Odra and Gryf are in a bad way financially. Furthermore they did not catch the amount allowed.
Polish trawlers will only just have arrived in the Bering Straight for the fishing season. This year they will be allowed 35,000 tons.
Jadwiga Berak, deputy minister of agriculture, fisheries and food said the negotiation had been carried out with several countries to allow Polish vessels to fish in their waters. Soon Polish trawlers will be fishing in Peruvian, Korean, Moroccan, Mauritanian and Angolan waters. Barbara Nowicka of Gryf says that it is true that the Polish government is trying to find no waters to fish in but the problem is cash. It gives a subsidy of USD16 per ton whereas the Japanese government gives its fleet USD160 per ton. That is why no help can be expected from Warsaw.
Power firm needs PLN1bn
The future owner of the Upper Silesian energy concern, GZE, will have to find around PLN1bn for development and modernisation. Forecasts the company has made suggest a requirement of PLN400m by the end of next year.
GZE has no chance of finding this kind of money by itself. Therefore privatisation is essential and this is forecast for the beginning of next year. This is later than was originally planned by the treasury and is a result of the large number of companies interested in the company.
Eleven companies registered in the tender that was announced by the government. Today the last of the potential buyers, the NRG consortium, Marubeni and GE Capital will begin due diligence. This will last until 6 June and on 30 June they will be in a position to make an offer to the treasury.
UOKiK examines press monopoly
The monopolies office UOKiK is to examine the case of alleged unfair competition by Passauer Neue Presse and Orkla Media who last year formed a media house called Media Tak which is selling press advertising. The case was brought to the attention of the UOKiK by CR Media who are making the accusation that other media houses are being forced out of the market
Last year almost PLN580m of advertising was sold in local newspapers. Media houses can expect from ten percent upwards for creating and placing this advertising. The largest ten local papers took 57 percent of this market and of these ten papers, nine belong to Passauer Neue Presse (Polskapresse) and Orkla Media.
The two companies formed a press alliance in March. In 13 of Poland s 16 regions they possess at least 40 percent of the local market in terms of copies printed. In ten of these regions they have no competition. Media Tak is organising advertising campaigns in 24 of 35 regional newspapers. According to CR Media it is impossible for anyone to organise a nation-wide campaign without Media Tak getting involved.
CR Media goes on to say that the alliance of Orkla Media and Polskapresse has the specific aim of deciding the form of the advertising industry in Poland despite the fact that the two companies compete with each other. In the opinion of CR Media Media Tak will limit the amount of titles in which to advertise which will lead to greater prices in a monopolised market.
Eureko increases stake in PZU
The government has made a decision on how it is to go about the second phase of the privatisation of insurance giant PZU. Probably on 30 May the sale of 25 percent of the company will be made to the Eureko consortium. This will be done without a public offer being made. Eureko bought a twenty percent share in the company during the first phase of privatisation.
On 28 April the privatisation advisers for the second stage of PZU was chosen. It was a consortium of ABN AMRO, Rothschild Corporate Finance Polska, Merrill Lynch International and BRE Bank investment house. In this case, the advisors who could have expected to have earned PLN63m may find themselves not getting paid.
Not long ago privatisation minister Emil Wąsacz was claiming that this privatisation phase could wait until the end of the year.
Life insurers in the red
Of the 29 life insurers on the Polish market only four reported profits. Those four are PZU Życie, Commercial Union, Amplico AIG Life and Nationale-Nederlanden. Other companies noted dynamic growth and an increase in premiums but are still waiting for profits.