News Parkiet

Executive compensation

Managers benefit from stock option plans

Senior executives at several Polish companies are about to receive millions in stock compensation after meeting their performance targets. They include Kęty packaging-maker, which gave 43 million zloty worth of new stock to seven top managers in return for a nominal payment of PLN 0.75 million.

That compares with Kęty?s 2003 earnings of PLN 69.1 million.

Kęty?s managers can?t sell their stock for two years.

Other firms with generous stock option plans include ComputerLand IT services group, Sokołów meat-processor and UniCredito?s Bank Pekao.

Equity markets

SEC approves two new IPO?s

Polish Securities and Exchanges Commission has approved IPO plans of Comp Rzeszów software house and Torfarm SA drug distributor yesterday. The SEC, also known by its Polish acronym KPWiG also gave its permission for the 1-billion zloty bond issue by Pe-eF-Ka, a small, Wrocław-based company that plans to use the proceeds to buy government debt.

Privatization

Government to give away more assets

Polish authorities continue to give away chunks of state-owned companies to failing government agencies. In August, the government plans the transfer of 64 percent stake in Kopex, a publicly traded mine construction group to KSC sugar holding. Also in August, Kompania Węglowa coal mine holding will receive 200 million zloty worth of stock in companies listed on the WSE, plus 500 million zloty in other assets.

Energy

PKE still interested in Bolesław Śmiały

PKE power plant holding has made another bid to create a coal mining joint venture with the state-owned Kompania Węglowa, based on assets of KWK Bolesław Śmiały coal mine. Poland?s second largest maker of electricity has offered to pay 30 million zloty to buy a stake in the new firm. However, PKE wants Kompania Węglowa to keep Śmiały?s debts, giving the new company a clean balance-sheet.

Privatization

Ciech shareholder unhappy about

cross-holdings

Polish government is looking for a solution to prevent corporate abuses at Ciech chemicals trading group, which owns 20 percent of its own stock through various subsidiaries, officials at the Treasury Ministry told PARKIET yesterday. According to some reports, stock now held by Ciech may be given to company staff, as part of employee stock option plan. The government has already agreed to dilute its 52 percent stake after Ciech?s planned IPO on the Warsaw Stock Exchange later this year.

Information Technology

Matrix.pl plans IPO in late 2004

Matrix.pl software house has announced plans to sell up to 30 million zloty worth of stock, including existing shares held by a Swiss investment fund in an IPO scheduled for the fourth quarter. The company says it will file its IPO prospectus within weeks. Best known as the maker of Symfonia accounting software, Matrix.pl has annual sales of approximately 100 million zloty, with net margins at around 5 percent.

Engineering

Ferrovial contract postponed

PPL airport operator has agreed to postpone completion of the 200-million dollar terminal at Warsaw?s Okęcie airport by about 14 weeks. However, officials at PPL say the contractors, Spain?s Ferrovial together with its Polish subsidiary Budimex, may have to pay a penalty because of the delay.

Airlines

Air Polonia expanding operations

Air Polonia, Poland?s largest low-cost carrier plans new routes from Szczecin, Wrocław and Bydgoszcz to London increasing the number of flights from Poland to the UK to 20 a week. The airline, founded just over a year ago also said it would start a new route connecting Warsaw and Stockholm. ?We are working on our plans for other international routes?, Polonia?s chief executive Jan Litwiński says.

Privately held Air Polonia, which reported gross profit of 1.2 million zloty?All I can say to that is to paraphrase Mark Twain, who said that ?Rumors of our demise are greatly exaggerated??, Litwiński said. Air Polonia has recently cut the number of charter flights after Polish travel agencies canceled many of the most profitable routes.

Earlier, sources told PARKIET that Cresheent investment fund, backed by Arab, UK and US investors may buy controlling stake in Air Polonia. Company officials refused to comment on the transaction. The deal may be worth ?several million dollars?, sources said.