News Parkiet

Pharmaceuticals

Investors seek higher price for Polfa Kutno

Polish mutual and pension funds controlling a combined 60 percent of Polfa Kutno drug-maker have offered to sell their stake to the highest bidder in a takeover battle between Miami-based Ivax Corporation and Italy?s Recordati. The group, which includes CSFB, Commercial Union, Pioneer, ING and AIG says it will sell to whoever offers to buy all of Polfa?s stock, offering a premium over Monday?s close of 325 zloty. Separately, Polish SEC says it will reopen administrative proceedings that gave Recordati the right to buy at least 33 percent of Polfa because of possible violation of anti-trust laws. The Italians now own 25 percent of Polfa.

Public finances

Pension fund shortfall widens

Funding gap at Fundusz Ubezpieczeń Społecznych, Poland?s public pension fund system is set to grow to 7 billion zloty from PLN 4.7 billion in December 2003 despite massive government subsidies. ZUS, Polish social security administration, which manages pension fund payments will be once again forced to turn to commercial banks to cover the shortfall.

Equity markets

Demand pushes up Elstar Oils IPO price

Elstar Oils Canola oil maker priced its IPO at 30 zloty per share, the high end of its initial pricing range of 24 to 30 zloty. The announcement came after the company revised its IPO plans, allocating additional 230.000 shares to financial investors because of strong demand from Polish pension and mutual funds. Elstar Oils said it would use IPO proceeds, some 45 million zloty in total to build a new plant making car fuel additives and to expand existing operations.

Beverages

Hoop Q1 losses widen despite Russian acquisition

Hoop SA soft drink maker reported net loss of 0.54 million zloty versus a profit of PLN 1.3 million in the three-month period ending March despite larger market share and the recent acquisition of a Russian company. Hoop, which went public in July 2003 said its revenue almost doubled to 101 million zloty after it purchased half of Russia?s Megapack, a local bottling plant near Moscow. The group posted operating loss of 0.55 million zloty because of stronger euro and higher cost of plastic bottles.