News Parkiet

Investing

Sejm deputies prefer bonds

to stock market

Polish politicians prefer to play it safe when it comes to personal investments. A brief survey of annual personal finance statements released by Sejm deputies shows that just 15 of the 460 members had publicly traded stocks, worth a total of 2.7 million zloty. That compares with almost six million zloty in government bonds held by 34 deputies and 2.8 million zloty in savings held in mutual funds. Most Sejm deputies had at least some cash savings in term deposits.

Rafał Zagórny from the right-of-center Civic Platform is the biggest risk-taker. Mr. Zagórny has almost two million zloty in 2NFI and 7 NFI privatization funds and Telekomunikacja Polska, Poland?s national phone company. Zagórny said he made 374.000 zloty ($96.000) on the stock market last year.

International

Yukos warns of bankruptcy because

of tax claims

Embattled Russian oil company Yukos warned that it may be forced to declare bankruptcy later this year because of government demands for billions of dollars in unpaid taxes. Yukos said it only had 800 million dollars in spare cash and was unable to meet Russian tax ministry?s demands for 99 billion roubles ($3.5 billion) in unpaid taxes because its assets have been frozen by a court order.

Equity markets

Elstar Oils up 13 pct. on IPO

Shares of Elstar Oils Canola oil-maker rose 13 percent on their first day of trading on Warsaw Stock Exchange after and IPO that was over thirty times oversubscribed. Elstar, which makes vegetable oil and fuel additives, closed at 34 zloty, up from IPO price of 30 zloty per share.

The company raised 45 million zloty minus IPO costs to pay for upgrades and expansion of its main production plant in Elbląg.

Mining

KGHM unions try to scuttle

privatization plans

Solidarity trade unions at KGHM Polish Copper mining group sent a letter to Treasury Minister Jacek Socha and other senior politicians protesting plans to reduce government?s stake in the company. Socha, who previously served as the head of Polish Securities and Exchanges Commission said recently he may use KGHM shares to shore up various state-owned companies and agencies.

Polish government controls 49.4 percent of KGHM.

Retailing

Alma Market files

for secondary offering

Supermarket operator Alma Market has filed with the Securities and Exchanges Commission for a 50-million zloty ($12.8 million) secondary offering.

Formerly known as KrakChemia SA, Alma said it would offer up to two million new shares to finance the expansion of its supermarket chain across south-central Poland. Jerzy Mazgaj, CEO of Kraków-based company promises he won?t sell the stock he already owns for at least three years. Mr. Mazgaj, a long-time shareholder, now has a 49.9 percent voting stake in the company.

Banking

Former MPC member joins board

of Millennium Bank

Former member of Poland?s Monetary Policy Council Dariusz Rosati became a new board member of Banco Comercial Portugues-controlled Bank Millennium yesterday, replacing prime minister Marek Belka.

Mr. Belka, an economist from Łódź served on Bank Millennium?s board since late 1990?s until his nomination as Poland?s new prime minister on May 2nd.

Millennium shareholders decided against paying dividends this year. Instead, last year?s earnings of 40.9 million zloty ($10.5 million) will be used as a special reserve for possible bad loans.

Millennium completed another round of restructuring last year, firing 25 percent of its staff. The bank is now refocusing on expanding its mortgage loan portfolio, credit card business and corporate loans to SMEs.

Construction

Ulma receives approval to buy Bauma SA

Spanish building supplies company Ulma Construccion has received regulatory approval of the Polish Securities and ExchEarlier this year Ulma said it would offer 2.04 euros for all outstanding shares of Warsaw-based company.

Bauma, whose total market cap now stands at 47 million zloty is expected to be delisted from the WSE after the buyout of minority shareholders.