News Parkiet

Chemicals

Karkosik to expand chemical empire

Maverick Polish businessman Roman Karkosik says he is planning new investments in Ukraine and Belarus, as well as the acquisition of several chemical firms in western part of Germany. Mr. Karkosik already owns Boryszew, a publicly traded antifreeze maker, Elana plastic bottle plant and several smaller businesses with a combined net cash flow of some 140 million zloty ($36.8 million) and sales of more than 1.2 billion zloty annually. Karkosik told PARKIET he could use some of that cash flow to buy a stake in PKN Orlen, Poland?s main oil refinery once oil prices go down and the stock gets cheaper. For now, Mr. Karkosik says, PKN Orlen needs to do more to improve its performance and cut down on extravagant spending projects, like its polyester joint venture with SK Eurochem. Under the right management it has the potential to double its earnings to 2 billion zloty a year, Mr. Karkosik says.

Roman Karkosik says one of his companies offered to buy 33 percent stake in Impexmetal metals trading group from the Polish government because of his personal background in metals and synergies with other companies in his group.

Politics

Belka wins vote of confidence

Polish Prime Minster Marek Belka won Sejm?s approval for his cabinet, averting the threat of early elections. Belka, a former SLD Finance Minister, was supported by 236 lawmakers, with 215 voting against and one abstention. It was the second attempt for Belka to confirm his government since he was named by president Aleksander Kwaśniewski to replace outgoing PM Leszek Miller, who resigned on May 2nd.

Furniture

New owner expected at WFM

Shareholders of WFM Oborniki furniture-maker are expected to pick new board members at an upcoming meeting, reflecting possible future ownership changes at a company from Western Poland. Woodworking machinery maker Jaroma SA said earlier it wants to buy at least part of the publicly traded WFM, now owned by the Bik family and by the Polish government. Sources close to the situation said Jaroma or its shareholders are also considering a new cash injection for WFM, buying convertible bonds later this year or in early 2005.

Founded over 100 years ago, WFM Oborniki went public in 1998. The company run into trouble after the Russian crisis and was forced to seek Chapter 11 protection from creditors to stay afloat.

Manufacturing

Powen minority bid for Wafapomp

unsuccessful

Powen SA industrial equipment maker bought just 3.3 percent of Wafapomp pump-maker in a takeover bid contested by Warsaw company?s minority shareholders. Powen, which had about 85 percent of Wafapomp after a series of previous bids offered to buy all outstanding shares at 6.75 zloty, far below fair market value based on its target?s book value of 12 zloty per share and improving earnings.

Polish Association of Individual Investors has already said it will go to court to block any attempts to delist Wafapomp unless Powen improves its bid.

Wafapomp, which makes precision machine products, including pumps and valves for the petrochemical industry was originally controlled by several NFI privatization funds. It became a public company in late 1990?s, when it begun trading at around 18 zloty per share.

Insurance

CU?s life insurer recovering

Commercial Union Polska TUnŻ, Polish life insurer controlled by UK?s Aviva Plc. has finally reversed previous losses on its investment portfolio after several poor quarters stretching back to late 2002. Commercial Union Polska TUnŻ, Poland?s second life insurer by premiums, collected 448 million zloty in premiums from its clients in the first quarter, up 6.4 percent from the same period last year.

Manufacturing

Apator to raise forecast after acquisitionApator SA industrial control equipment maker is likely to raise its full-year earnings forecast within a few days after a friendly takeover of Pafal, a smaller competitor which makes electrical measuring equipment. Sources close to the company said Toruń-based Apator, best known to the general public as the sponsor of one of Poland?s leading motorbike racing teams could increase its sales forecast by as much as 20 percent from the original PLN 116 million. Apator said earlier it expects net earnings of some 18 million zloty, excluding any gains on the sale of large commercial property in its home city of Toruń.