News Parkiet

Real estate

Echo outbids GTC over Wrocław shopping mall

Kielce-based Echo Investment property developer has outbid Globe Trade Centre, its competitor from Warsaw after it agreed to pay as much as 58 million zloty for the 28.000 square meter property in the city of Wrocław. The price, at over 2000 zloty ($550) per square meter, is double the going rate on the local market. Downtown location at Plac Grunwaldzki square will be used as the site of a new shopping mall. Echo, which already owns and manages a dozen shopping centers in smaller Polish cities, plans to invest as much as 300 million zloty in the project.

?Honestly, I don?t think (Echo?s founder) Michał Sołowow has ever overpaid for anything?, says Bartłomiej Michalski, sector analyst at BDM PKO brokerage defending record sale price.

Privatization

Poland rejects bid for Impexmetal

Shares of Impexmetal SA, a non-ferrous metals trading group, fell 2.4 percent to close at 41.4 zloty yesterday after Poland?s Treasury Ministry said it rejected a bid by Boryszew chemicals maker for the government?s stake in the firm. The Ministry gave no reason for rejecting the offer and said new bids for the stake will be accepted until September 7.

Polish government has put on sale as much as 31.5 percent of Impexmetal, valued at over 40 million dollars based on Tuesday?s closing price.

Petrochemicals

PM unhappy about recruitment procedures at PKN Orlen

Prime Minister Marek Belka says the selection of new CEO of PKN Orlen oil refinery ?lacked transparency? just days after its board of directors picked one of their own to head Poland?s largest company. Orlen?s chief executive Jacek Walczykowski said he won?t comment on PM?s statement.

Apparel

Bytom sales margins improving

Zakłady Odzieżowe Bytom, once one of Poland?s most suit-makers, reported second quarter earnings of 25.000 zloty yesterday on one-time gains after it reversed provisions on returns from customers. Sales margins remained negative, but the company narrowed its quarterly loss from 1.2 to 0.4 million zloty. Sales were up by a third to PLN 8.2 million, or 2.3 million US dollars.

Medical services

Swissmed sets preliminary IPO date

Private medical clinic operator Swissmed SA is expecting regulatory approval for its Initial Public Offering at the SEC?s next meeting on August 10. Gdańsk-based Swissmed said earlier it would seek more than 15 million zloty from the stock sale, which could start next month. ?We want to do our IPO as soon as possible, preferably in early September in order to avoid going up against other big IPOs planned for this fall?, chief executive Roman Walasiński says.

The economy

Finance Ministry sees lower inflation next year

Polish government expects the inflation to fall to an annualized 2.5 percent in the second half of next year, ministry officials said yesterday. ?We estimate the inflation rate will fall to 2.5 percent in the second half of 2005 given the reversal of negative supply shocks and a restrictive monetary policy?, Ministry of Finance said. Central Bank?s Krzysztof Rybiński was less optimistic when he spoke the day before. Rybiński, NBP?s vice-president, warned that next year?s inflation could well rise above the official target of 3.5 percent.

Food industry

Wilbo falls on earnings report

Shares of Wilbo SA fish processing company plunged 10 percent to 2.70 zloty after a surprise, second-quarter loss of 2.7 million zloty. The firm, based in Władysławowo on

the Baltic coast, reported net earnings of PLN 60.000 in the second quarter of 2003. Quarterly sales were up 13.2 percent to PLN 48.7 million, but Wilbo?s gross margins fell sharply because of higher energy prices and the cost of frozen fish. Wilbo buys all of its fish and seafood products from other fishing companies.

Energy

Remak to report recordRemak power plant contractor could reports its highest ever six-month earnings thanks to a 1.2 million euro bonus for the completion of upgrades program at Estonia?s Estii power plant. Net profits could go as high as 2.5 million zloty, or 0.83 zloty per share, sources close to the situation told PARKIET recently. That compares with last year?s earnings of PLN 1.5 million. Shares of Remak, which is indirectly controlled by Spain?s Acciona group, rose 3.8 percent to close at 11 zloty in Tuesday?s trading on the WSE.