News Parkiet

Public finances

Poland may cut gasoline taxes, Belka says

Poland may cut its sky-high excise taxes until oil prices on the world markets come down to a more reasonable level, prime minister Marek Belka said on Friday. 'I've told the finance minister to tinker a bit with our gasoline taxes', Belka told students at a meeting at SGH business school in Warsaw.

World oil prices are 'a disaster', Belka said. On Friday oil prices in New York hit 40 dollars per barrel, the highest since Iraq's invasion of Kuwait in August of 1990. Decision on the possible cuts will be made sometime next week. Since early April cost of gasoline went up by 0.2 zloty per liter.

Separately Belka said faster than expected economic growth may reduce the country's budget deficit below a forecast record-high level of 45.3 billion zloty ($11.5 billion) in 2004.

Mutual funds

Citibank to distribute foreign mutual funds

in Poland

Citibank subsidiary became the first foreign mutual fund company to file for SEC permission to start selling Luxembourg-registered fund of funds to Polish investors. Other international financial groups that plan to distribute their international mutual funds in Poland include Jyske bank, Nordea, Commerzbank, Societe Generale and Schroeders. Since May 1st entry into the European Union, foreign mutual fund companies are no longer required to set up their own subsidiaries in Poland.

Equity markets

Pekaes to list on the WSE

Poland's largest truck shipping company, state-held Pekaes group has announced plans to finally list its stock on the Warsaw bourse after several years as a public company. Pekaes, which is 51 percent owned by the Polish government said it would seek approximately 100 million zloty from an IPO scheduled for early fall of this year. The firm hasn't announced any IPO details yet, but sources at the company say Pekaes will try to sell between 7 and 12 million new shares.

IPO proceeds are to be used for equipment upgrades including a satellite-based fleet management system. Pekaes group posted net earnings of 11 million zloty last year. Sales totaled PLN 510 million, up slightly from the year before. Pekaes employs a staff of 2100.

Food industry

Sokołów posts record 1Q earnings

Top Polish meat processing company Sokołów S.A. said on Friday its first quarter earnings rose to 15 million zloty. That compares with a net loss of 8.2 million last year, although this year's figure includes 7-million zloty special gain on Sokołów own stock held through various subsidiaries.

Sales were up 52 percent to 330 million zloty. Share of exports to Germany and elsewhere doubled to 20 percent of the total sales. The company said new agreement between EU and Russia will make it easier for Sokołów and other Polish meat processors to expand east into new markets in the former Soviet Union

Insurance

PZU to invest PLN 60 million in Lithuania

PZU insurance group has announced plans to invest over 60 million zloty to buy two Lithuanian subsidiaries of Germany's Norddeutsche Landesbank. 'Total PZU investments in Lithuania by the end of this year are set to rise to approximately 60 million litas, or 21 million dollars, company representative Mirosław Kowalski told PARKIET on Friday.

Two years ago PZU spent an estimated 5.5 million dollars to buy Lindra life and property insurance firms.

In addition to Lithuania, PZU admitted it is looking at other markets in southern and eastern Europe to compensate for slower growth at home.

Manufacturing

Insider trading at Manometry

CEO and two former managers of KFM Manometry industrial equipment maker are charged with insider trading related to their company's takeover four years ago. Warsaw district attorney alleges that KFM's chief executive, and two other managers bought 'tens of thousands' of KFM stock after learning its then ownerTheir buying spree drove KFM's stock price up from 3.5 to over 10 zloty. As an added benefit, the three received a special bonus from Pekao once the price hit 9.5 zloty. Last names of the three can't be published because of Polish privacy protection laws. Insider trading carries a maximum penalty of up to 5 million zloty and a prison sentence of up to five years.

Separately, KFM's controlling shareholder, Germany's Wika Systems announced it would buy out the remaining minority shareholders and take the company private. Wika now owns approximately 99 percent of KFM.