News Parkiet

Power industry

Solorz takes ZE PAK

Polish media magnate Zygmunt Solorz-Żak took control of Embud, a holding company previously controlled by Elektrim that owns a big chunk of Zespół Elektrowni PAK power plant, publicly traded Warsaw conglomerate said in a statement released late Wednesday. Solorz-Żak?s Inwestycje Polskie, another holding company, seized Embud from Elektrim to secure its 40 million zloty loan, due in October 2005, Elektrim said, adding that the move would protect these assets from bondholders. Zespół Elektrowni PAK, a key Elektrim holding, is worth approximately twenty times the amount Warsaw-based company owes Inwestycje.

Meanwhile, Elektrim bondholders say the move is an attempt to strip Elektrim of one of its few remaining assets at well below market price. They demanded immediate repayment of Elektrim?s 450 million euro bonds.

Mining

KGHM?s 2Q net drops

to PLN 495 million

Copper mine KGHM Polska Miedź, Poland?s biggest resource stock after PKN Orlen, said its second quarter unconsolidated earnings fell almost 8 percent to PLN 495.6 million ($150 million). Sales were up 7.6 percent to as much as 1.85 billion zloty. KGHM said.

Unconsolidated earnings of KGHM do not include profits from its two telecom units, regional fixed-line operator Telefonia Dialog and mobile phone company Polkomtel SA.