News Parkiet

Banking

Millennium executives best-paid despite mediocre performance

Senior executives at Banco Comercial Portugues-controlled Bank Millennium earned a total of 31 million zloty, up 13 percent from last year, making them by far the best paid-banking managers in Poland. On average, each board member at Millennium, which reported earnings of 40 million zloty last year, received PLN 2.8 million ($737.000) for his services.

Steel industry

Stalexport falls on government claims

Shares of Stalexport steel trading group plunged 4.2 percent on Friday on news that the Polish government has a 73-million zloty claim against the company. Stalexport, which is due to join WIG20 blue-chip index later this month made a pledge to help repay outstanding debts of the now-bankrupt Huta Ostrowiec steel plant in the event of default back in 1997. The group has over 300 million zloty in off-balance sheet liabilities for similar pledges on behalf of Walcownia Rur Jedność pipe manufacturer.

Petrochemicals

PKN buys Unipetrol for 505 million dollars

PKN Orlen, Poland?s largest oil company signed a 505 million dollar contract to buy a 63 percent stake in Unipetrol, the Czech?s Republic largest oil and chemicals company from the Czech government. Sources close to the transaction, which includes assumed debt of 1.7 billion Czech crowns ($50 million), said the purchase will be finalized by the end of September.

Retailing

Artman gains on IPO

Artman SA, a clothing retailer from Kraków gained 10.5 percent on its first day of trading on Friday. Shares of the company closed at PLN 21, adding 2 zloty from its 19 zloty offering price on the Warsaw Stock Exchange. Artman raised almost 24 million zloty minus IPO expenses when it sold 1.25 million shares several days ago via Dom Maklerski Millennium.

Artman, which now has 50 ?House? brand retail outlets, says it will use IPO proceeds to open up to 90 new stores by the end of 2006.

Information Technology

Warsaw?s Comp to file for IPO

Warsaw-based IT services provider Comp SA has filed for IPO just days after a similar filing by a former subsidiary, its namesake from Rzeszów. The firm, now owned by its CEO Jacek Papaj, says it will seek up to 35 million zloty to expand its portfolio of security applications. The firm is now best known as the maker of CompCrypt encryption device. Comp Rzeszów, which is controlled by Enterprise Investors venture capital fund is expecting SEC authorization to sell new stock on June 22nd. The firm is a former subsidiary of Warsaw?s Comp that was spun off just months ago.

Venture capital

Enterprise Investors planning two more IPOs next year

Enterprise Investors venture capital fund is planning to sell two more companies on the Warsaw bourse next year, EI partner Jacek Siwicki said on Thursday. The fund, which has 25 firms in its portfolio, says it is considering IPO exits for two of its major investments, Agros Nova juice-maker and Opoczno, one of Poland?s largest makers of ceramic tiles.

Media

Broker FM deserves a discount, BDM says

Shares of Broker FM, broadcaster of Poland?s top commercial radio station RMF FM are worth about 102 zloty each, says BDM PKO BP, one of two stockbrokers selling the stock in an IPO later this month. BDM?s Bartłomiej Michalski says Kraków-based Broker FM might be worth as much as 122 zloty each based on valuation of other radio companies in Europe and in the US. However, BDM has decided to apply a 15 percent discount because new shareholders will have virtually no say in how the company is run. Broker FM?s founders plan to retain control over the firm using preferred stock. In addition, BDM says media stocks are generally more expensive than other companies, reducing the potential upside of Broker FM. Michalski estimates earnings at 2.4 zloty per share, giving Broker FM a P/E of 42.1 zloty. Sale

Insurance

Former CU executive buys 25 pct. of Royal PBK

Former Commercial Union Polska life insurance company Ryszard Karpowicz bought 25 percent of Royal PBK life insurer from Royal & Sun Alliance Insurance Group for an undisclosed amount. Mr. Karpowicz says he has plans to hold on to his stake for at least five years

Royal PBK has net assets of just 10.4 million zloty, with less than 1 percent market share.