News Parkiet

Insider trading

Modrzejewski fired over Izolacja,

others let go

Former CEO of PKN Orlen became the only person accused of insider trading in the 1999 bid for Izolacja ZD roofing manufacturer, but several other investors benefited from information leaked before the buyout offer became public. Modrzejewski, who previously worked as the chief executive of Izolacja?s main shareholder, IX NFI investment fund was detained by the Polish secret police in early 2002 after allegations that he told other people about the bid by Denmark?s Icopal building materials supplier. The head of Poland?s largest refinery was released after a few hours, but lost his job the next day. He was never formally charged for his role in the affair.

Polish Securities and Exchanges Commission believes that at least seven individual investors and five institutions, including PZU insurance group and two subsidiaries, gained about 10 million zloty buying Izolacja stock on insider tips. The group allegedly includes Andrzej Wojdyga, co-owner of Dr Witt juice-maker, who bought 6.6 million zloty worth of Izolacja?s stock. Mr. Wojdyga then sold his stake for PLN 8.7 million after Icopal?s offer was announced.

Modrzejewski?s IX NFI also made additional purchases after receiving Icopal offer in October 1998, adding to its 32 percent stake in the company.

None of the other suspects have been charged. Some Polish politicians and local media say charges are merely a pretext to remove Mr. Modrzejewski, who didn?t make any money on the stock tip he allegedly gave others.

Public finances

Belka picks new Finance Minister

Polish Finance Minister Andrzej Raczko will quit his job next week barely two months into his terms, Prime Minister Marek Belka said yesterday in a surprise announcement. He will be replaced by professor Mirosław Gronicki, chief economist at Bank Millennium. Raczko has taken up a new job at the International Monetary Fund, Belka said while announcing his first major cabinet reshuffle.

Telecommunications

Crowley reports 1st ever profits

Crowley Data Poland, one of the country?s largest independent data carriers has finally turned profitable five years after it begun selling data transmission services. Last year?s sales rose 60 percent to PLN 39 million. Crowley, a company owned by US-based Crowley LLC, said it turned EBITDA-positive. It also reported its first-ever net earnings. No specific figures were given, however.

Crowley operates wireless broadband networks in major Polish cities.

Equity markets

Zelmer to file for IPO

Zelmer home-appliance maker could file for IPO as early as next month, selling its stock to the public in early September, sources close to the situation told PARKIET yesterday. Polish government said earlier it wants to sell 85 percent of the company in a privatization sale on the WSE. Analysts following the company say the stake in Zelmer, Poland?s largest maker of vacuum cleaners and kitchen appliances, may be worth as much as 300 million zloty.

However, sources say Zelmer will most likely postpone planned sale of new stock until sometime next year. Chief executive Andrzej Libold says his company needs about 140 million zloty to strengthen its distribution network in Central and Eastern Europe. Zelmer also says it has plans to enter other EU markets.

Finances

Getin to raise more money for takeovers

Getin Holding financial group has announced plans to sell several hundred zloty worth of new stock to pay for the acquisition of Bank Przemysłowy. The group, founded by maverick Polish businessman Leszek Czarnecki also said it needs extra money to buyout minority shareholders of Górnośląski Bank Gospodarczy. No specific figures were given. However, company watchers say the offering, scheduled for 2005, may be higher than this year?s 330-million zloty stock sale.

Separately Getin said its main operating unit, Silesia-based GBG bank posted preliminary 1H earnings of some 24.6 million zloty, up 16 percent from last year.

Earlier this year Getin paid 255 million zloty to buy 71 percent stake in GBG.