Polish Business Survey
ITI plans stock market issue
The media group ITI has announced that it intends to raise at least USD100m from a share issue on the Warsaw stock exchange. A further issue on the London stock exchange is also planned. In order to maintain its profile strictly media it has announced that it intends to sell off its interest in Chio, the crisp and snack manufacturer.
Mortgage banks call for legal changes
Mortgage banks are calling for changes in the law which would make it easier for them to operate and make life safer for their clients. One of their demands is a law that would forbid developers to take money from clients whilst construction is underway. Cash would be held in an account in the mortgage bank and paid once the development was complete. It is currently a very common practice for developers to fund investments through installments that are paid by the future owners of the property. This situation has been caused by the shortage of accommodation that has existed for thirty years.
PKP wants UMTS licence
State rail operator PKP has announced that it is interested in bidding for a UMTS licence. PKP would not apply alone for the concession but would seek an alliance with a foreign telecoms firm that does not yet have a presence in this country.
Credit agency seeks mortgage escape
With new car sales figures released on Monday showing a major drop from June to July of this year, car credit agencies are seeking other forms of income. The Wrocław based PTF has announced, for example, that it will get involved in mortgages and this could be its major activity in the future. At the moment PTF is having to content itself with direct sales of credits through a network of dealers.
Coca-Cola to close factory
Coca-Cola Beverages (CCB) has announced that it is to close its factory in Środa Śląska near Wrocław. Production facilities will be transferred to its factories in Łódź and Radzymin. Around 110 people from the Silesian factory will be made redundant. CCB has announced that it intends to continue investing in new technology and marketing as well as new products. It is hoping to raise sales of coca-cola this year by eight percent.
Lycos may buy Interia
It is reported that negotiations that have been on-going since May to find a buyer for the Interia portal which is owned by Comarch and RMF FM are now approaching a conclusion. One of the interested parties is the US portal Lycos which has suggested that the Kraków portal may be worth USD175m.
Fewer deliveries
Figures just released show that in the first seven months of this year 19,500 delivery vans were sold, around 3,600 less than in the same period of last year. Producers and analysts suggest that the reason for this is the high cost of leasing and credits, high running costs and the lack of any iniciative to develop small business.
Monopolisation of the fuel market
A report issued yesterday shows that import of fuels fell in 1999 by almost 1m tons. Foreign companies supplied around 2m tons of fuel satisfying around 16 percent of domestic requirements. This suggests the increasing dominance of Polish suppliers, especially PKN Orlen, particularly as Rafineria Gdańska, the second largest Polish producer of fuels noted a drop in fuel production of 3.3m tons over the previous year. Analysts believe that PKN Orlen now has a 72 percent market share in petrol and 65 percent in diesel.