News Parkiet

Banking

KBC seeks merger candidates for Polish unit

Belgian KBC's Polish subsidiary, Warsaw-based Kredyt Bank could be merged with another Polish financial group, KBC's chief executive Willy Duron said in an interview with "Handelsblatt" recently. KBC, which spent several hundred million euros to buy Kredyt Bank said it wants to retain control over the company, despite its massive losses due to bad loans.

Industry sources commenting on the report say BCP's Bank Millennium, which suffers similar problems is a possible merger candidate for KBC's ailing subsidiary.

Media

Broker FM closer to IPO

Polish Securities and Exchanges Commission is expected to authorize the IPO of a holding company that owns the country's largest commercial radio station. Broker FM, which owns Kraków-based RMF FM pop radio station says it will use IPO proceeds to launch local radio stations in several major Polish cities and to reduce its debt level. Existing shareholders, including RMF's founder Stanisław Tyczyński are no longer planning their own satellite TV station because the project is 'too risky'.

Mr. Tyczyński and other founders will retain control over the company through preferred voting stock.

Mining

Poland to sell controlling stake in Kopex

Polish government has agreed to give away 65 percent of Kopex coal mine construction group to help state-owned Krajowy Polski Cukier (KPC) sugar holding, which is expected to sell the company to domestic pension and mutual funds.

Kopex, which has annual sales of approximately 250 million zloty is listed on the Warsaw Stock Exchange since late 1990's, but the government retained majority stake in the company after an unsuccessful IPO. Katowice-based group is building mines in Vietnam, Turkey, Serbia and elsewhere. As a side business, Kopex also sells coal in parts of Central Europe and Polish-made weapons to customers in East Asia and the Middle East.

Based on Monday's closing price of 57 zloty, Kopex has market value of some 114 million zloty, which means KPC will get shares worth PLN 73 million ($18.7 million).