Polish Business Survey
Down and its going further down
Against the opinions of most analysts, the Warsaw stock market was unable to maintain its upward thrust. Most shares went down on Friday. Contrary to predictions made last week, the new economy sector joined more traditional stocks in going back down again. It seems to fair to assume that shares will go down today and following tomorrow s break there is likely to be even bigger falls.
Chemical concern
It would appear that chemical giant Ciech is close to taking a share in Alwernia which is based near Kraków and has a sixty percent share of the domestic phosphate market. A second suitor for Alwernia was the Belgian, French, Morrocan concern Prayon-Rupel who will now perhaps seek to gain a larger foothold in Poland through some other means.
Portal plans USD20m issue
In the first quarter of next year the internet portal Arena.pl is planning to enter the Warsaw stock market. The company will be placing 20 — 30 percent of its shares on the market. A USD20m emission is planned, negotiations are currently underway with three banks.
Arena is 99 percent owned by CentralEuropa. com which is registered in New York. Twenty percent of its shares are in the hands of TDA Capital Partners which until recently was a part of the Franklin Templeton group.
Double trouble
Trade unions from the coal sector are not too happy about the amalgamation of the sector into two companies, one for the west and the other for the east of the Silesian mining basin. The PZZ union which represents the engineers and economists strongly believe that far from aiding the troubled sector, these mergers are more likely to push it over the edge.
No dumping
Wojciech Katner, deputy economy minister says in today s Puls Biznesu that the government plans to protect small suppliers in their dealings with the major hypermarkets, reduce long payment terms and forbid dumping — the practice of selling goods below their wholesale purchase price.
Losing bearings
The bearing factory at Kraśnik is close to privatisation with bids having to be in by 21 August and a final sale being completed before the year is out.
At the beginning of last week the treasury announced a list of nine arms companies which are to be privatised and Kraśnik is the likely to be the first to find a buyer. Only five percent of its output is for the military. The treasury thinks that the sale of 80 percent of the company would be the ideal solution although it is prepared to offer as little as ten percent if that is all it can sell. Both privatisation advisors Towarzystwo Doradztwa Inwestycyjnego (TDI) and the treasury believe that the December deadline will easily be met.
Privatisation options include with and without the military part of the company. Clearly branch investors would prefer an option to take the company without being burdened with a military section.
Sweet Mexicans
Next year confectionery producer Mieszko from Raciborz in southern Poland who recently bought Warsaw sweet producer Walter, could in turn be bought out by the German Katjes Fassin. The German company originally wanted a strategic alliance with the Bydgoszcz based Jutrzenka.
Nonetheless Mieszka is also talking to Mexican food group Bimbo who are interested in obtaining factories in this country.
Two years to sort out Polfa
Wiktor Tomusiak, MD of pharmaceutical producer Polfa Kutno, claimed that Enterprise Investors, the strategic investor in Polfa Kutno, is not likely to sell its controlling stake in the company. The venture capital fund Enterprise Investors owns a 51 percent share in Polfa Kutno which is quoted on the Warsaw bourse.
Tomasiak claims that as Polfa Kutno is being restructured, it would not be a good time to sell the company and a better idea is to wait for a couple of years when the value should be much greater.
In 1995 Enterprise Investors put USD14m into the company as a short term investment.
The company forecasts that by 2002 turnover will be over PLN250m although increases in sales have been somewhat braked of late. Next year sales will be greater than the PLN210m noted in 1999.
Strzelec wants to sell Perła
Brewers Strzelec have suggested that they might sell their share of Lublin based Perła. Carlsberg and Brau-Union are thought to be interested in the company. Per3a is aiming to sell 50m litres of beer next year.