News Parkiet

Corporate governance

Shareholders getting back at outside

board members

Outside board members are facing a new form of harassment by controlling shareholders at some Polish corporations. One such company, canned fish maker Wilbo SA has lowered compensation for all its board members to just 500 zloty ($135) after pension funds and other minority shareholders outvoted its founders and chose two new board representatives. The two, including Raimondo Eggink, a well-known advocate of minority investors, also receive a monthly retainer of 50 zloty for the extra time spent monitoring the performance of Wilbo?s managers. By law, board members supervising daily operations at any Polish company are entitled to additional compensation reflecting their input.

Corporate lawyer Grzegorz Domański who follows the case, says extra pay for special board members appointed by minority investors should reflect greater responsibility and more work at company?s behalf.

Petrochemicals

Gas shortages unlikely despite troubles

at Yukos

PKN Orlen oil refinery has fuel stocks for 44 days, enough to find a new supplier to replace Russia?s Yukos, which is facing a possible bankruptcy over government tax claims, sources close to the company told PARKIET yesterday. Yukos provides most of Poland?s oil supplies through Swiss-based Petroval. The Russian company says it has paid its pipeline bills until the end of July.

Telecommunications

Interia plans new stock sale

in September

Poland?s third largest web directory, Kraków-based Interia.pl has announced plans to sell up to 1.9 million new shares to finance a mystery Internet-related project. ?We?ve got a few things, but I can?t talk about details yet?, chief executive Tomasz Jażdżyński said. Interia said earlier it needs the money develop broadband services.

Interia, which is due turn EBITDA-positive this year, sold over 1.6 million new shares at 23 zloty each in an IPO three years ago. The stock has since lost about half its value, although it traded as low as 2.38 zloty at one point in late-2002.

Transportation

Pekaes planning fall IPO

Poland?s largest trucking company, state-owned Pekaes SA is preparing for the 150-million zloty Initial Public Offering scheduled for the fall of 2004. The forwarder has yet to file IPO documents, but has already selected an unnamed broker to handle the sale, chief executive Jan Dalgiewicz told PARKIET. Polish government, which has over 51.5 percent of Pekaes would see its stake in the company diluted to about 30 percent after the IPO. However, the Treasury Ministry, official owner of Pekaes stake would probably sell some of its shares

France?s Norbert Dentressangle transportation and logistics group, as well as investors from the former Soviet Union are reportedly interested in buying part of Peakes during the IPO.

Peakes, which has a fleet of 600 trucks and annual sales of more than 500 million zloty, wants to use money from IPO to buy new trailers and other trucking equipment. Some of the proceeds would also be used for expansion in the former Soviet Union, including acquisitions of trucking and logistics companies there, Dalgiewicz said.

Privatization

Poland expects higher dividends

Polish government could break last year?s record intake of dividends from various companies still in state hands. Treasury Ministry officials have set this year?s dividend target at 200 to 250 million zloty versus last year?s PLN 467 million ($128 million). It has already collected 65 million zloty in dividends by late June. On top of that, the Treasury expects about 140 million zloty each from PZU, Poland?s largest insurer and from Totalizator Sportowy, the official sports betting agency plus at least 70 million zloty from its smaller holdings.

Personal finances

Mutual funds slowing downPolish mutual funds took in just 1.7 billion zloty in the first six months of 2004 compared with PLN 10 billion in the same period a year ago, mutual fund monitoring group Analizy OnLine and STFI industry association reported this week. Total assets under management by the 140-odd mutual funds at the end of June rose to PLN 35 billion ($9.6).