News Parkiet

Equity markets

Markets recover from PiS victory

Polish stock market bounced back from early morning sell-off yesterday, prompted by the news that Law and Justice (PiS), a hardline law and order group, got more votes and seats in Sunday?s parliamentary elections than its future coalition partner, liberal Civic Platform group. WIG20 blue chip index closed at 2486 points, up 1.2 percent from Friday?s closing. The index was down more than 1 percent in pre-afternoon trading. The zloty, however, lost ground to both the euro and US dollar, while benchmark five-year bonds gained nearly ten percentage points.

Building materials

Koelner to buy UK?s Rawlplug

Fastening systems and tools distributor Koelner SA is in talks to buy UK?s Rawlplug, Europe?s oldest manufacturer of anchoring systems from BPB group. Wrocław-based company said the deal to buy Rawlplug may be closed as early as next month.

Koelner wouldn?t say how much it offered to pay for Rawlplug. However, CEO Radosław Koelner said his company expects to pay ?much less? than the 27 million pounds BPB paid for the company four years ago. Mr. Radosław Koelner, himself a major shareholder, said the acquisition would be financed one-third with cash and the rest with debt. It has no plans to sell new shares to pay for Rawlplug, Koelner said.

Travel & leisure

Podróże TV may list on WSE

Shares of Podróże TV travel agency may list on the Warsaw Stock Exchange in twelve to eighteen months, Carlson Private Equity investment group said yesterday. First, Podróże TV, a former dot-com that begun as industrial metals trading platform, plans to buy Pes Travel, a regional travel agency from Toruń and shares of UK-registered PVT, which broadcasts travel-oriented Podróże TV over major cable networks.

Insurance

Cardif goes east

Polish unit of France?s Cardif insurance group has announced plans to open local units in Latvia and Lithuania. It may expand to other former Soviet republics, including Ukraine and Lithuania, chief executive Jan Emeryk Rościszewski said.

The group, which includes Cardif TUnŻ life insurer and a much smaller life insurance business, collected some 191.2 million zloty in premiums in the first six months of this year. Net earnings rose 88.2 percent to PLN 19.2 million.

Information technology

I&B System plans another debt

for stock swap

Wiring system and LAN contractor Invar & Biurosystem plans yet another debt for stock swap, offering new shares to major creditors. It may also sell surplus real estate and cut administrative expenses shutting down several inactive subsidiaries. The group says it doesn?t have enough cash to finance bigger projects, including many public contracts.