News Parkiet

Privatization

Poland announces terms of PKO BP stock sale

Retail investors will receive up to a quarter of the 30 percent stake in PKO BP, Poland's largest bank, in a privatization IPO scheduled for mid-October, Treasury Minister Jacek Socha said on Friday. International investors will be allocated up to 35 percent of the offering, while the reminder will go do domestic institutional investors.

Public finances

Tax collection rates fell 6.3 pct. in 2003

Documents obtained by PARKIET from the Ministry of Finance show the government collected 6.3 percent less in personal income taxes last year, despite the one percent increase in wages and salaries, Taxpayers declared income of 391.5 billion zloty, or 105 billion dollars. Average tax rate fell to 15.35 percent.

Insurance

Ventus receives another PZU dividend payment

Bondholders of Ventus SA, a publicly traded SPV that owns a minor stake in Powszechny Zakład Ubezpieczeniowy, Poland's biggest insurance company, have received another installment of PZU dividends. Thinly traded fund, which is listed on CeTO Over-the-counter market, said it has received a total of 0.73 million zloty.

Founded two years ago, Ventus tried to raise as much as 240 million zloty from bondholders to buy employee-owned stock of PZU. It ended up selling bonds worth some 21.1 million zloty, enough to buy 0.23 percent interest in the insurance firm.

Because of the nature of its passive investment Ventus basically runs itself and its directors and managers have agreed to work for free.

Chemicals

Garbarnia Brzeg stock plunges

Shares of Garbarnia Brzeg, a small plastics recycling company controlled by Polish businessman Roman Karkosik went into a freefall over the last few weeks after its CEO said she is selling some of the stock. Garbarnia, which until recently run one of Poland's few remaining tanneries, plunged from close to 12 zloty in late July to just 5.45 zloty on Friday. In the meantime, CEO Karina Wściubiak said in a statement filed at the SEC she has sold almost 100.000 shares at prices ranging from 5.5 to just over 8 zloty. 'I needed some cash', Ms. Wściubiak admitted in a telephone interview.

Some of Garbarnia's other shareholders blame Ms. Wściubiak for deliberately lowering her company's stock price to allow her boss. Mr. Karkosik, to raise his stake on the cheap.

Civil engineering

Mostostal up 18.4 pct. on settlement of PPRM dispute

Shares of Mostostal Płock, a civil engineering group controlled by Spain's Acciona, rose 18.4 percent on news of a settlement in a dispute with key customer, PPRM bridge-building company. The two contractors both filed charges over the suspension of a 36-million zloty contract to build a new bridge across the Vistula river after Mostostal tried to renegotiate the deal because of rising steel prices. PPRM countered by demanding 191 million zloty ($50 million) late fee against the publicly traded company, prompting a minor sell-off of Mostostal stock earlier this month.

Mostostal closed at 21.9 zloty, the highest in over five years.

Energy

ZE PAK dispute with coal miners drags on

The fight between KBW Konin coal mine and Zespół Elektrowni PAK power plant over the price of lignite continues to escalate. Earlier this week the miners asked Polish anti-trust authority UOKiK to look into ZE PAK's practices. They say the power plant is refusing to renegotiate rates it pays for lignite despite the recent hike of market prices.

Personal savings

Pater still optimistic about the launch of IKE retirement accounts

Minister of Social Policy Krzysztof Pater, father of new, individual retirement savings program called IKE, remains optimistic about the prospects for new savings product days before its official launch. Starting September 1st, all working age Poles will receive optional, tax-exempt retirement accounts. However, because IKE annual savings limit is just 3500 zloty, most Polish brokerage houses and banks say they are not interested in opening special accounts.

Nevertheless, Pater is expecting 'dozens' of new investment products specifically tailored to IKE. According to his estimates, up to 3.5 million people will join the program this year alone.