News Parkiet

Equity markets

No ?quiet period? for PKO BP

IPO candidates are refusing to publish even the most basic information about their proposed offerings, fearing the wrath of the Polish Securities and Exchanges Commission. New rules on pre-IPO announcements were imposed on May 1st in a revised Securities Law. One company, state-owned PKO BP bank has no such qualms. Poland?s biggest lender already said it wants to sell 5 to 6 billion zloty worth of existing stock, or up to 30 percent of the company.

Public finances

Poland cuts spending by limiting

pension hikes

Polish parliament has approved a government plan to limit increases in the retirement benefits on Friday. Sejm, the lower house, has agreed to the proposal to adjust public pensions once accumulated inflation rate rises over 5 percent. The change is intended to cut budget spending by as much as 8.9 billion zloty through 2007.

Banking

Millennium 1H profit triples

Bank Millennium, a Polish lender controlled by Banco Comercial Portugues, said its profits in the first two quarters have tripled on gains from the sale of car loan portfolio and lower operating costs. Net income rose to 112 million zloty from PLN 33.8 million last year, the company said. Millennium posted a 111.5 million zloty gain selling its massive car loan portfolio to Banco Santander earlier this year.

Equity markets

NTT System public offering delayed

Initial Public Offering by NTT System computer-maker will be held at the end of this year or in early 2005, sources at the company told PARKIET on Friday. Poland?s largest PC assembly plant said previously it would go public in the first half of 2004, but the company focused on winning new contracts instead.

NTT System also took more time registering as a joint-stock company. Polish stock market regulations don?t allow limited liability companies to list their shares on the exchange. Founded in 1986, NTT System plans to raise between 20 and 30 million zloty. If the IPO is successful, existing owners? stakes will be diluted by about 20 to 25 percent. NTT?s shareholders include CEO Tadeusz Kurek, CFO Andrzej Kurek and Davinder Sinkh Loomba, a businessman from Singapore.NTT manufactured about 86.000 PC?s in 2003. This year?s sales are set to rise to about 550 million zloty. The company plans to sell as many as 120.000 new computers.

Energy

KGHM expands energy operations

KGHM copper mine has announced plans to build its own, gas-fired power plants after transferring 62 million zloty worth of assets to an energy unit. The mining group gave Głogów and Legnica heat and power generating plants to the wholly-owned Energetyka Sp. z.o.o., KGHM said in a press statement on Friday. State-owned mine said earlier it would replace existing coal-fired power blocks with gas-fired facilities. The project will cost an estimated 400 to 500 million zloty, or up to 139 million dollars. One of Poland?s largest energy consumers, KGHM buys 85 percent of the electricity it uses from outside sources. The rest is generated internally. The company estimates it will cut its energy bill by as much as 100 million zloty a year after building new plants.

Energy

Remak to bid for new contracts in Estonia

Remak power plant contractor is awaiting new upgrades program at Estii power plant in Estonia, one of Eastern Europe?s largest energy producers. Publicly traded firm, a subcontractor of Foster Wheeler, has already completed several contracts there, worth about 12 million euros. Estii power blocks are worn out and will be replaced soon, Remak says.

Retailing

Eldorado hits new all-time high

Shares of Eldorado grocery retailer rose 8.1 percent to a record high of 41.5 zloty on Friday. Company watchers attribute the rally to a research report containing estimates of Eldorado?s 2Q earnings issued by BDM PKO BP brokerage.

Netia SA, Poland?s second largest local phone company may bid for new GSM and 3G licenses once they go on sale soon, CEO Wojciech Mądalski said on Friday. Netia, whose stock trades as part of WIG20 blue-chip index on the WSE, said it is talking with other operators to join the bid.