News Parkiet

Banking

PKO BP to file for IPO this week

Poland's biggest lender, state-owned PKO BP is expected to file its IPO prospectus this week, possibly on Thursday, sources close to the situation told PARKIET yesterday. Treasury officials responsible for the privatization of PKO BP said earlier the government is planning to sell 30 percent of the company worth an estimated 5 to 6 billion zloty.

PKO BP has called a news conference on Thursday to discuss its second-quarter earnings.

Public finances

Poland may raise compensation for state managers

Polish government has approved a new law that would eliminate restrictions on compensation for managers of state-owned companies. Existing laws limit salaries of top executives running government firms to six times average monthly wage, now at around 2500 zloty ($690). Treasury officials say these restrictions are 'unreasonable' and are proposing a new compensation package that would include regular salary, plus a second, performance-based component.

'Why is it, that senior managers at PKO BP bank or PZU insurance group, two of the top firms in these sectors receive salaries that are at least ten times lower than mangers working for much smaller private companies', deputy Treasury Minister Tadeusz Soroka said, defending the draft law. The proposal still has to pass through the Polish parliament.

Mining equipment

ZEG sees stronger earnings after selling

tool-making unit

Zakłady Energetyki Górniczej mining equipment maker is expecting stronger earnings after getting rid of the sole money-losing subsidiary. Publicly traded ZEG has sold ZEG-Form tool-maker just days ago. The company accounted for just 4.6 percent of ZEG's last year's sales of PLN 37 million. Chief executive Andrzej Bywalec says his company's second-quarter earnings were much better than in the same period last year.

ZEG makes electronic and control equipment used in coal mining.

Civil engineering

Mostostal signs contact with PKN Orlen

Mostostal-Płock construction group has signed an 18-million zloty contract to build part of polyethylene unit at the main PKN Orlen refinery in central Poland. Monday's contract accounts for over 20 percent of Mostostal's sales of PLN 87.7 million reported last year. On the WSE, Mostostal rose 8.1percent to close at 16 zloty after the announcement.

Media

ATM Grupa stuck with Polsat TV

ATM Grupa TV producer can't seem to shake off its dependence on Telewizja Polsat, its main customer, company officials admitted recently. Sales to Polsat accounted for over 80 percent of ATM's total revenue last year. Wrocław-based firm said during its IPO seven months ago it wants to diversify revenue stream, selling new shows to TVP, Poland's public broadcaster and other clients.

At least one analyst following the stock says she is not worried about ATM's prospects. Katarzyna Perzak from DM Millennium brokerage says ATM has order backlog of some 47 million zloty, just six million short of its sales forecast for 2004.

Auto industry

7bulls.com may start real estate operations

7bulls.com, a former Linux software-maker that came back to its roots as Iveco truck dealer, says it is working on a property development project near Warsaw. It has found a partner to build houses on a 190.000 square meter property in Nadarzyn.

One of the strangest and most obscure firms ever to list on the WSE, 7bulls.com also says it may shut down some of its subsidiaries. Five out of seven firms that are part of 7bulls.com group, including former IT subsidiaries are no longer doing anything. 7bulls.com had market value of more than 500 million zloty ($137 million based on yesterday's rates) at the height of the Internet mania, after it announced plans to turn into Linux software developer. It is now down to around 31 million zloty.

Separately, 7bulls.com said it wants t

Auto parts

Valeo to expand Polish operations

French auto parts maker Valeo has announced plans to spend as much as 100 million euro to expand its operations in Poland over the next few years. Since 1996, Valeo has opened five new plants in Poland. It now has annual sales of some 800 million zloty. New facilities will include windshield wiper motor factory near Kraków and a lighting plant in Chrzanów, also in southern Poland.