News Parkiet

Equity markets

Euronext, Deutsche Boerse bid for LSE

Euronext NV, the owner of Paris and Amsterdam exchanges, approached London Stock Exchange with

a takeover offer after the three-century-old UK market rejected a 2.6 billion dollar bid by Deutsche Boerse last week. LSE, which lists shares of some of Europe?s biggest corporations, said it will hold talks with both suitors.

Both Euronext and DB are seeking to buy LSE to gain scale in an attempt to counter the impact of lower trading fees.

Currency market

Zloty hits new high against US dollar

Polish zloty continues to gain against the common currency and the US dollar because of renewed buying by foreign investors. The unit climbed to 3.07 to the dollar in intraday trading yesterday, the highest in several years. Economists say they expect zloty to keep rising against major global currencies because of rising demand for Polish stocks and bonds.

Some warn that stronger zloty could start affecting GNP growth.

Chemicals

Dwory starts trading at 39 zloty

Shares of Firma Chemiczna Dwory, Poland?s sole synthetic rubber maker, opened at 39 zloty, up 5.4 percent from the IPO price yesterday. The stock of Oświęcim-based chemicals firm closed at PLN 37.9, up 0.9 zloty despite warnings about employee stock overhang and cyclical nature of Dwory?s business by some investment firms not involved in the IPO.

Based on Monday?s closing price Dwory has forward P/E of 9.67. The company expects earnings of 50 million zloty on sales of PLN 1.03 billion this year.

Power industry

Rafako signs power plant contract with Bełchatów

Rafako SA power plant builder has signed an 830 million euro contract to build a new power plant for Elektrownia Bełchatów together with France?s Alstom group. Polish company?s share of the four-year project, the biggest power industry upgrade in years, totals 178 million euros, Racibórz-based Rafako said in a statement to the stock exchange. Bełchatów contract accounts for about two years? worth of Rafako?s regular sales.

Shares of Rafako, which is listed on the WSE, rose

5.7 percent to 13.95 zloty on news of the contract anticipated since the spring of this year.

Retailing

Eurocash buys MHC grocery wholesaler

Eurocash wholesale Fast-Moving Consumer Goods distributor has agreed to pay up to 14 million zloty, or $4.45 million for the twelve outlets of MHC, a regional grocery wholesaler from south-western Poland, the company said in a statement published over the weekend. Poznań-based Eurocash, which was forced to postpone planned 150 million zloty IPO in Warsaw earlier this month, says the takeover an integration of MHC stores within its chain will cost an additional 3.5 million zloty.

MHC had sales of PLN 176 million last year against Eurocash revenues of PLN 1.4 billion ($455 million).

Food processing

Atlanta?s IPO successful, CEO says

Exotic nut and raising importer Atlanta Poland has sold 13 million zloty worth of new shares in one of this year?s smallest IPO?s, founder and chief executive Dariusz Mazur told PARKIET yesterday. Atlanta offered up to 1.26 million shares at 10.5 zloty each, giving new shareholders 23 percent stake in Gdańsk-based firm.

Mazur said the offering was oversubscribed by both retail and institutional investors.