News Parkiet

Pension funds

Poland fiddles with OFE fund rules

to meet EU criteria on public finances

Polish government may push for legislative changes that would add funds held in OFE pension accounts to public assets, lowering the official public debt threshold. Ministry of Social Policy, led by Krzysztof Pater, is proposing to eliminate rules that make OFE funds part of their owners? estate. Assuming that Eurostat goes along with these changes, the move would reduce Poland?s public debt from 52.1 percent of the country?s GNP to just 47.6 percent.

Petrochemicals

Orlen to name new CEO

Directors of PKN Orlen, Poland?s biggest oil refinery and the largest gas station operator is expected to announce their choice for the new CEO of Płock-based company. The most likely candidates include deputy finance minister Igor Chalupec, formerly a senior banker at Pekao, followed by another banking executive, Paweł Gricuk from the Polish unit of JP Morgan. Other possible candidates include Jarosław Kryński, a 12-year veteran from Shell, currently based in London. Whatever the choice, Orlen?s new CEO will be asked to sign a new contract that restricts his or her severance pay. Orlen?s ex-CEO Zbigniew Wróbel is set to receive golden parachute payment of some 6 million zloty for this two and half years at the company.

Mining

KGHM up despite fire damage

Shares of KGHM Polish Copper rose 1.5 to close at 34 zloty yesterday despite Sunday?s fire at one of the company?s copper works. Construction of a new cooling and cooling removal systems may cost between 6 and 8 million zloty, head of production Marek Szczerbak told PARKIET yesterday. According to KGHM, total book value of equipment lost in the accidental fire at Huta Miedzi Legnica production plant was just 0.5 million zloty and these assets were covered by insurance. The company will meet this year?s copper production plan of 545.000 tons by raising the output at other copper works, KGHM spokesman Dariusz Wyborski added.

Energy

Kozienice IPO delayed until next

year

Initial Public Offering of Elektrownia Kozienice power plant, one of Poland?s largest, will be postponed until next year, Polish Treasury Ministry, which handles privatization of state assets said on Monday. The government has already hired DGA consulting group to draft Kozienice?s issuing prospectus. IPO details will be announced at the end of November, Treasury?s Dariusz Witkowski said.

Kozienice has approximately 10 percent market share, with annual sales of PLN 1.7 billion ($480 million) last year.

In addition to Elektrownia Kozienice, Poland plans to float stakes in two regional power companies, Grupa Energetyczna Enea from north-central Poland and Silesia-based Południowy Koncern Energetyczny, Witkowski added.

Retailing

NFI Empik CEO buys PLN 2.2 million

in stock

NFI Empik Media & Fashion, a large Polish clothing, multimedia and toy retailer, said that its chief executive office completed a purchase of 2.2 million zloty ($630.00) of company stock. Eastbridge group appointee Maciej Dyjas bought almost 324.000 shares of the thinly traded NFI Empik Media & Fashion, paying 7 zloty per share.

Information Technology

New I&B shares flood the market

Debtors of Invar & Biurosystem IT services group can start unloading their stock received in exchange for unpaid debts today after WSE authorities authorized trading of 1.9 million shares issued in July. The stock, representing almost 10 percent of I&B?s outstanding equity, sold at 1.4 zloty, an 8 percent discount compared with yesterday?s closing price of 1.52 zloty. Chief executive Henryk Kruszek, himself a major shareholder admits that the overhang could depress his company?s share price.

Invar & Biurosystem was forced to file for protection from creditors after a near-bankruptcy several years ago.