News Parkiet

Equity market

PKN hits all-time high after broker mistake

Shares of PKN Orlen oil group rose a much as 8.5 percent to a record high of 50 zloty because of a mistyped order sent by an unnamed stockbroker, who wanted to buy a large block of PKO BP bank. The order caused a momentary spike that sent WIG20 blue-chip index up more than 1 percent to 2087 points.

Civil engineering

Contractor files for bankruptcy

of Polnord group

Grudziądz-based Budmark, a former subcontractor that was told to leave Gdańsk construction site because of delays, has filed for bankruptcy of the publicly traded Polnord construction group, demanding 950.000 zloty in compensation.

Polnord, a 300-million zloty company, the biggest civil engineering firm in northern Poland, called the charges ?groundless? and said it expects the court to throw out Budmark complaint.

Banking

ING to sell stake in Polish unit for up

to 833 million zloty

ING Groep may raise as much as 833 million zloty, or $283 million selling a 12.8 percent stake in its Polish unit ING Bank Śląski based on the maximum price set for retail investors. The biggest Dutch financial services group will offer 415.000 shares of ING BSK for up to 500 zloty per share. It is also selling 1.25 million shares to institutions.

ING must sell part of its stake in order to comply with local banking regulations concerning foreign ownership of Polish banks.

Information technology

Wola Info may seek listing on WSE

Warsaw-based hardware supplier Wola Info SA may list its shares on the Warsaw Stock Exchange, chief executive Piotr Majcherkiewicz told PARKIET on Monday. The group, which sells CRM systems, call center and data center solutions to big corporate clients, like Telekomunikacja Polska and PKN Orlen, says it needs at least ?several million zloty? to expand into other areas and finance acquisitions of even smaller IT firms. The IPO would be possible in the first half of 2006, Majcherkiewicz said.

Wola Info reported a 37 percent increase in sales to as much as 173 million zloty. Net earnings totaled more than 5 million zloty. Both figures were much higher than its own, internal forecasts, Majcherkiewicz said.

Retailing

EMF to double capital spending

NFI Empik Media & Fashion retailer plans to open as many as 40 to 50 new stores this year on top of more than 160 it already owns, company officials said at a conference yesterday. EMF, which also operates 39 language schools, said it plans to finance planned expansion by issuing more debt, some 80 million zloty in total. Eastbridge group-controlled luxury goods, apparel and multimedia retailer had outstanding loans of just 83 million zloty at the end of December. It spent more than 42 million zloty last year upgrading its retail outlets.

EMF chief executive Maciej Dyjas said his company also has plans to launch up to five new brands this year, two of them franchised from other retailers. The group has shelved plans to raise money on the market in a secondary offering, Dyjas said.

Previously known as NFI Hetman privatization fund, EMF reported fiscal 2004 earnings of 26.25 million on sales of 1.12 billion ($380 million). Its bottom line would be much better if it wasn?t for the 4 million zloty charge on the sale of Czech photo company E-Photo.

Retailing

Vistula announces stock option scheme

Senior managers of Vistula SA, Kraków-based maker of men?s suits, will receive more than 244.000 shares at 17.5 percent discount to current market price between now and 2007 if the stock climbs above 50 zloty a share versus yesterday?s close of 31.7 zloty, the company said. Vistula, which has market value of approximately 154 million zloty, reported earnings of 19.3 million last year.

Personal savings

Mutual fund assets rose 4.3 pct. in February

Assets under management by Polish mutual funds rose 4.3 percent to 39.56 billion zloty in February, topping the level of 10 billion euros for the first time every, Analizy OnLine, an industry research group said yesterday. Bond funds accounted for most of this growth, reversing some of the losses suffered since mid-2003. Total value of assets managed by bond funds was up almost 10 percent (PLN 782 million).

Stock funds reported a net loss of 47 million zloty, or 1 percent of their assets. Their loss would be much higher if it wasn?t for the more than 300 million in stock market gains.