News Parkiet

Insurance

PZU to start paying dividends, sources say

Poland?s largest insurer, state-owned PZU SA plans to pay out half of last year?s earnings as dividends or 5.4 zloty per share, sources close to the situation told PARKIET on Friday. PZU posted a record 900 million zloty ($237 million) in 2003. Shares of PZU are not listed on any exchange in Poland or abroad, but the company has a number of private shareholders, including pan-European insurer Eureko with a 31 percent stake and several Polish banks.

Internet

Another bid for Wirtualna Polska

Investors are lining up to buy the assets of Wirtualna Polska, Poland?s second largest Internet directory, which went bankrupt earlier this year. Wirtualna?s co-founder and ex-CEO Leszek Bogdanowicz has made a bid to buy Internet company?s assets, offering to pay off smaller creditors and former key shareholder, TP Internet. Mr. Bogdanowicz?s bid comes on the heels of two other bids by another ex-CEO, Marek Borzestowski and MCI Management venture capital fund.

Wirtualna Polska owes its creditors more than 36 million zloty. In addition to that, Mr. Bogdanowicz has a 158-million zloty claim against the company?s assets because of alleged copyright infringements.

Wood industry

Mzyk getting ready to sell part of Paged group

Polish businessman Edmund Mzyk sees bright future for one of his public holdings, Paged furniture-maker. Former state-owned trading company has completed its restructuring and sold off most money-losing subsidiaries since Mzyk took over Paged several years ago. It now has a third of UK?s market for custom-made pub and restaurant furniture and annual sales close to 280 million zloty. Mzyk, who owns several building materials? companies, says Polish pension and investment funds may buy part of Paged sometime in the future.

Banking

Millennium to boost ROE by 2006

Bank Millennium, a Polish lender controlled by Banco Comercial Portugues, plans to boost its Return On Equity to at least 12 percent by 2006 and 15 percent the year after, the company reported on Friday. Millennium, which has been plagued by irregular profits in the past, said it plans to raise its share of commercial loans from 3.7 to 4.6 percent by 2006.