News Parkiet

Telecommunications

PSE and KGHM may merge their telecoms

Polskie Sieci Energetyczne (PSE), an operator of Poland's national power grid, is going to place KGHM, a copper mining conglomerate, the proposal to combine their telecommunications subsidiaries. PSE owns Exatel data transmission company and KGHM owns Telefonia Dialog local fixed-line telecommunications firm. "KGHM and PSE both have telecommunications assets. I think selling them jointly through an IPO would be favourable to both companies," said Piotr Rutkowski, deputy CEO of PSE. "I think the market capitalization of such a joint company would amount to one billion zloty," he added. "We are open to the PSE's proposal although it would take some time to consider it," Andrzej Szczepek, deputy CEO of KGHM told PARKIET.

Petrochemicals

Grupa Lotos may go public in September 2005

Poland's second largest oil refinery Grupa Lotos won't be sold in an IPO by mid-2005, the company's CEO Paweł Olechnowicz said yesterday. Before the public issue the company wants to find a way to save an insolvent Rafineria Glimar, a regional refinery from south-central Poland, which is expected to merge with Lotos. According to Olechnowicz, Grupa Lotos may go public in August or September 2005. Olechnowicz estimates that the Gdańsk-based company is worth 2.6 billion zloty. After merger with Rafineria Glimar and two more local refineries from Czechowice and Jasło, Lotos's value may increase to 4 billion zloty, added Olechnowicz.

Monetary policy

MPC to keep rates steady

Most economists and market watchers interviewed by PARKIET don't expect a rate hike after today's meeting of rate setting Monetary Policy Council. "Zloty is stronger, wages fell in real terms and there are no factors which would drive inflation up. This means rates will remain steady," said Łukasz Tarnawa, chief economist at PKO BP. However some analysts predicts a rate rise of 25 basis points. "We estimate there is no chance to lower inflation to a target of 1.5-3.5 percent without increasing rates," said Piotr Bielski, economist at BZ WBK.