Polish Business Survey
BOC halts investments
British Oxygen Corporation s Polish subsidiary, BOC Gazy, has suspended all further investments in Poland. The reason for this is cash flow problems created by the difficulty in getting paid by steelworks for the supply of oxygen. The two major debtors are the Częstochowa and Ostrowiec steelworks. The former is entirely owned by the treasury, whilst Stalexport has a 56 percent share of the latter. Both companies owe BOC Gazy around PLN10m.
Last week Regina Englicht, financial director of BOC Gazy, threatened treasury minister Andrzej Chronowski that the company would pull out of Poland if these problems were not resolved. Yesterday Regina Englicht said that BOC Gazy had calmed down although it intends to freeze further investments in Poland and stop supplying the Częstochowa and Ostrowiec steel mills with oxygen.
Marian Szparkowski, technical and strategic director at the Częstochowa steelworks was not too bothered about BOC cutting of supplies. He said that he could get it from elsewhere.and that BOC might find it hard to find other clients. Nonetheless he is hoping for a negotiated settlement with BOC. BOC has so far invested USD180m in Poland.
Brok leaves stock market
From today Koszalin brewers Brok will no longer be quoted on the stock exchange. The brewery together with its German owners, Holsten Brauerei AG, believe that they will find it easier to realise their own strategy outside of the stock market. In any case the investor holds almost all the shares. Brok entered the stock market around three years ago at PLN34.50 per share. Yesterday they were trading at PLN43.50.
Budimex is best
The opinion of many analysts is that of very few construction companies whose shares are worth buying, the best is Budimex. Yesterday the shares increased in value by what is considered to be the maximum possible in one day.
Low euro not good for exports
The low value of the euro is having a bad effect on clothing manufacturers Bytom. Management now thinks that this could harm the restructuring of the company. One way of helping would be to look for new markets in the dollar area.
Pekao SA fails to interest
The recent issue of Pekao SA shares failed to generate any interest of any consequence at all. If offers of shares of such giants like Pekao SA do not tempt investors then it is difficult in the eyes of many analysts to say what would.
PKO BP gets rid of agents
Following PKO BPŐs annulling its contract with Sopot based credit agency Best, it is clear that the bank intends to pursue the same policies with all its agencies. From now on the bank will only lend money directly.
Not wanted
In the new management board of PZU Życie, no treasury members were elected. It is clear therefore that managing director Grzegorz Wieczerzak may soon have more time to spend with his family.
UMTS tender rules changed
The Communications Ministry has got rid of one of the two most criticised requirements of the UMTS tender: that bidders had to supply an undated cheque for EUR700m. Consortia now have supply a bank guarantee for EUR50m. They also have up to twenty days more to prepare their documentation. The controversial issue of domestic roaming remains without change.
Hard times at Daewoo
Due to the difficulty in selling new cars, Daewoo has begun to reduce the number of its dealers. Those that remain now face the difficulty of consolidation.
No investor found
Kraków based Veracomp, a distributor of IT solutions, has given up looking for an investor. At the beginning of next year the company will weigh up if it is worth going for a stock market entry.
Exbud out of market
The Swedish Skanska has announced that it will take Exbud out of the stock market. In the meantime the restructuring of Kielce based Exbud is coming to an end.