News Parkiet

Banking

UniCredito may pay 613 zloty for BPH

UniCredito Italiano may have to pay as much as 613 zloty ($191.5) a share in cash for HVB?s Polish unit, Bank BPH because of a quirk in Polish stock exchange regulations on takeover bids. By law, bidders must make an offer equal to or higher than the amount paid to purchase stock of a target company on the open market in the last twelve months. The law extends to subsidiaries, including CDM Pekao, a Polish brokerage indirectly controlled by UniCredito. CDM Pekao served as BPH?s market maker until August 12, the day BPH?s stock traded as high as 613 zloty (it closed at 610 zloty on Friday).

The broker wouldn?t talk about its trading activity involving BPH?s stock. Nonetheless, Polish Securities and Exchanges Commission said being a market maker counts too, when asked about its interpretation of the Securities Law.

Average three-month price of BPH on the Warsaw Stock Exchange is now approximately 594 zloty. Every increase by 5 zloty translates into 41.3 million zloty in extra cash UniCredito will have to pay for BPH?s stock now held by minority shareholders.

Petrochemicals

Orlen unlikely to pay Agrofert claims,

CEO says

PKN Orlen oil refinery won?t have to pay any compensation to Czech Agrofert chemicals group, chief executive Igor Chalupec told PARKIET on Friday. ?Our lawyers say this scenario is impossible?, he said. Agrofert owner Andrej Babis suggested last week he would seek as much as 350 million euros in compensation if Orlen refuses to sell several chemical companies, as promised in April 2004. One Polish oil industry analyst says Orlen should sell all five chemical companies because of their shaky financial performance and uncertain prospects.

Automotive industry

Toora files for IPO

Car parts maker Toora Poland, part of Italy?s Toora group, filed for IPO on the Warsaw Stock Exchange on Friday, the first step before an offering that may come as early as this year. Specializing in aluminum car components, Toora Poland reported pro forma sales of approximately 143 million zloty ($44.7 million), with export accounting for about half of its revenues. The company wouldn?t talk about the details of its IPO, but market sources speculate it will only sell new stock, with pre-IPO shareholders retaining their existing stake.

Privatization funds

NFI Fortuna to start another buyback

NFI Fortuna privatization fund has called a special meeting to decide on yet another buyback this Monday. Controlled by Ballinger Capital private equity fund, Fortuna has already returned 110 million zloty to its shareholders in a series of previous buybacks, repurchasing two-thirds of outstanding stock. It now has assets of about 102 million zloty, or 9.02 zloty a share, while its stock trades at a slight discount, closing at 8.85 zloty on Friday.