News Parkiet

Conglomerates

TUP to spin off subsidiaries

Publicly traded investment firm Trans Universal Poland plans to spin off and list several of its subsidiaries on the Warsaw Stock Exchange, chief executive Robert Moritz told PARKIET yesterday. Pruszków, central Poland-based TUP, which started out as a trucking company, sold its forwarding business to Raben Logistics at a substantial profit earlier this year. The company wouldn't say how much money it made selling part of its stake in CJ International until the deal is cleared by Polish anti-trust authorities. TUP made two other acquisitions since then, buying a stake in System SL transportation company for just 3 zloty. Moritz says System SL is a turnaround project. It also bought a 60 percent stake in Modena, a failing apparel maker from Poznań. Housed inside former Prussian barracks in downtown area, Modena pays far too much money to maintain the property, Moritz says, suggesting it is yet another candidate for a public listing once it completes its restructuring program.

Telecommunications

Elektrim bondholders demand payment

Bondholders of Elektrim power and telecoms group say they've had enough with Warsaw-based company, demanding an immediate payment of its 470-million euro corporate bonds. The creditors say they will file for conglomerate's bankruptcy unless it pays up. Shares of the company plunged 8 percent to just 3.77 zloty yesterday on news that a court in London ruled in favor of the bondholders. The court said that Elektrim broke the terms of a settlement with bondholders negotiated four years ago on at least four occasions. Elektrim wouldn't comment on the verdict.

Banking

Pekao to start marketing home loans on TV

Bank Pekao, Poland's second biggest lender in terms of net assets, plans to spend an unspecified amount advertising zloty-denominated mortgage loans on TV. Traditionally conservative when it comes to advertising, Pekao will emphasize safety of home loans in Polish zlotys, its flagship products versus much more popular loans in Swiss francs offered by other banks. Pekao sold 793 million zloty worth of zloty mortgage loans in the first six months of this year, boosting its market share in that segment to approximately 34.6 percent.