Polish Business Survey
Bourse: Glimmer of hope
Following Wednesday s falls on the stock market, on a day when turnover was particularly low, analysts are now forecasting that the present trough could be somewhat short lived. The bad news is that any rise in value will be only to correct those falls and itself be short term. A slight hope for IT was evident that investors bought up these shares which they evidently considered to be underpriced. If the Nasdaq shows any signs of picking up then these shares at today s prices could be well worth taking.
Chemical industry seeks buyers
The treasury is looking to privatise four large chemical concerns in Tarnów-Mościce, Puławy, Kędzierzyn-Koźle and Police. Reports on their privatisation should be sent to the treasury this month and the method of privatisation can be decided. Krzysztof Kaczorowski MD of fertiliser producer Anwil Włocławek stated that he is interested in a share in these companies either through purchase or in partnership with other companies. He also claimed that his company was about to make an offer to the treasury. Anwil Włocławek has also said that it will be investing PLN500m in its own development from its own funds and loans from a consortium of Citibank, Deutsche Bank Polska and PBK bank.
Societe Generale moves on BISE
According to unconfirmed reports the French Societe Generale is attempting to obtain a majority share in BISE bank.
Lets drink to that!
The American alcohol distributor McLane could well invest in the Polish Multi-Ex, the largest alcohol warehouser in Poland.
Dispute delays investment
The Finnish cellular phone and computer manufacturer Elcoteq has announced that it wants to build a DEM160m electronics factory in Wrocław s technology park. The 10,000sqm factory would employ around 1,000 people. Unfortunately a conflict between the agricultural agency AWRSP and city authorities in Wrocław has delayed this investment.
The agricultral agency has claimed the land and wants to decide on how to sell it. The city wants it for a technology park in which Elcoteq would be the first company and the magnet to bring in other investors. Elcoteq have said that if the city is unable to resolve the dispute soon it will locate elsewhere, possibly in a special economic zone.
More cash needed for beer
This month s shareholders meeting of Łomźa based brewers Pepees must take a decision on a new share issue to cover the PLN35m - PLN40m needed for modernisation. Employees and management are likely to have first right of refusal.
Polish petrol to go east
Petroprofit, a daughter company of PKN Orlen, together with its partners in Lithuania and the Ukraine, will be starting a business to distribute Polish fuels and oils. Within the next three years the company hopes to have 30 -50 filling stations in the western Ukraine. Negotiations are also underway with potential partners in Russia and Belarus to start a similar company there.
Mining divided by two
Plans for a consolidation of the coal mining industry are nearing completion and are now being examined by the unions. It would seem that two companies will be formed, an eastern and a western company.
Power station signs contracts
Despite having missed the deadline on the purchase of the Rybnik power station, the government is still trying to find an agreement with an American-Japanese consortium. Last week Rybnik signed a six year contract to sell energy to the GZE distribution company as well as a letter of intent concerning the purchase of fuel from the Rybnik coal company (RSW).
One of the reasons why the consortium of NRG, Marubeni and GE Capital recently pulled out of the deal to buy the plant was the uncompetitive relationship between the price of coal and price of energy.
The treasury twice gave the consortium a ÔfinalŐ deadline whilst Rybnik tried to get contracts signed.
Last weeks letter of intent with RSW is valid for six years. Under it RSW would supply 3.1m tons of coal annually which should satisfy 50 percent of requirements.
Whatever happens the consortium is not likely to make a move until September. This would give National Power, who are rumoured to have made an offer, a chance. As a last resort the treasury might offer the plant on the stock market.