News Parkiet

Policy debates

Ownership dilemmas

Polish government should have the same rights as private investors in corporations with mixed state and private ownership, say the top executives, policymakers and legal experts who participated in a debate arranged by PARKIET. Yesterday's debate to decide if the government can be a good shareholder for private firms is viewed against the background of arbitration proceedings over PZU insurance group and parliamentary commission investigating management changes at PKN Orlen refinery. Polish government has large stakes in both firms.

Monetary policy

MPC may raise interest rates tomorrow

Poland's Monetary Policy Council could raise the country's benchmark interest rates as early as tomorrow after higher inflation figures in June, economists say.

Nearly all analysts expect interest rates to increase by 50 basis points tomorrow or at MPC's next meeting in late August. Central bank-led MPC has set a 4.4 percent inflation target for 2004.

Pharmaceuticals

Polish shareholders won't get bonus stock from Ivax

Planned stock swap of Polfa Kutno comes too late for shareholders of the Polish company to receive new shares of its US parent, Miami-based Ivax Corp. Ivax, which became Polfa's largest shareholder when it bought 25 percent stake at the beginning of June, has announced plans for a five-for-four stock split in August.

New shares will be issued on August 24 to shareholders of record on August 10, Ivax said. Ivax has already filed for listing on the Warsaw Stock Exchange after a friendly takeover of Polfa. However, Polish IPO was postponed until September because of regulatory delays.

Information Technology

Softbank fires senior executive

Softbank IT services group has dismissed Jarosław Ogorzałek, an executive vice-president who oversaw its subsidiaries, administration and legal department. Mr. Ogorzałek will receive severance package worth over 2 million zloty ($0.55 million) or 73.000 shares of his former company. The stock is worth approximately 1.3 million zloty based on yesterday's closing price. Softbank itself, one of Poland's leading providers of banking software, said nothing about the firing except for a brief press release to investors.

Last year Softbank posted net earnings of PLN 2.2 million.

Musical instruments

Calisia closer towards possible IPO

Polish piano-maker Calisia plans to increase the number of musical instruments sold this year by as much as 25 percent. Kalisz-based company is expecting sales growth in line with higher production levels. 'After the first six months we are reiterating our plans for the whole year. We want to increase our sales to PLN 5.5 million, with earnings at about 400.000 zloty', CEO Tadeusz Sobczak told PARKIET.

Each year Calisia manufactures several hundred hand-made pianos, most of them destined for sale to Western Europe, Russia and the Americas.

Founded in 1878, Calisia may be listed on the WSE sometime in the future. Its shareholders, led by Unitra trading group, are set to meet in September to vote on the conversion of privately held firm from limited liability into a joint stock company to comply with WSE regulations. Calisia said earlier it would seek between 6 and 8 million zloty from an IPO. Proceeds would be used to upgrade its main production plant in Kalisz and to expand distribution network in Poland and elsewhere.

Privatization

Business leaders condemn golden share plans

Polish business leaders say they are not impressed by government plans to propose a new law on 'golden shares' in state-owned firms slated for privatization. PKPP, an association of private businesses, says golden share criteria are too vague because they would give Polish authorities the right to interfere with every company where the government has even a single share.Government officials said recently they would push for golden share rule in order to retain control over a dozen or so 'strategic' companies. However, they didn't name actual targets, prompting fears the new law would extend to an ever-growing number of Polish firms with government stakes.