News Parkiet

European Union

Poland celebrates EU expansion

Tens of thousands of people across Poland celebrated with street festivals and other outdoor events in a countdown to the European Union enlargement.

Politics

Belka appointed to head government

Polish President Aleksander Kwasniewski appointed Marek Belka to lead a new government the day after the country became a member of the European Union. Belka, a former finance minister and economic director for the Iraqi provisional government, replaces Leszek Miller, whose popularity slumped to below 10 percent. Belka?s cabinet includes five ministers from the former government, including Jerzy Hausner, deputy prime minister in charge of economy, Andrzej Raczko, finance minister, and Włodzimierz Cimoszewicz, foreign minister. Among the new appointees is Jacek Socha, the head of the Polish Securities and Exchanges Commission (KPWiG), who will take over as treasury minister. Parliament must vote on the cabinet by May 16. Belka can count on backing from the largest party, the Democratic Left Alliance, as well as the Labor Union and Federal Democratic Club. He still needs support of about 30 legislators to back his candidacy. If Belka loses the ballot, parliament may nominate a prime minister.

Petrochemicals

MOL may list its stock in Warsaw, CEO says

Hungarian national oil and gas company MOL may list its stock in Warsaw early next year, CEO Zsolt Hernadi said on Friday. MOL is still interested in closer ties with Polish petrochemicals group PKN Orlen, Hernadi said at a press conference. Letter of intent between the two firms expired after April 30th deadline. Hungarian company wants to see less government influence on PKN?s decisions, Hernadi said. It could resume merger talks after Polish government reduces its 28 percent stake in PKN Orlen.

Telecommunications

SM-Media IPO successful, company says

Warsaw-based VoIP operator SM-Media announced it has raised approximately 7.5 million zloty in a recent IPO. The firm, which has annual sales of approximately 22 million zloty, sold 100.000 shares priced at 75 zloty each. Over 150 retail investors bought 80 percent of the stock offered after SM-Media decided to reduce the number of shares that were initially allocated to institutional investors. SM-Media?s cofounder and Chief Executive Wojciech Gawęda said his company prefers retail investors because it wanted to maximize trading liquidity after the IPO. The stock, now trading on CeTO over-the-counter market will move to the WSE by early June.

Initially founded as newspaper publisher in early 1990?s, SM-Media now sells Voice over IP-based international, DLD and F2M services. Proceeds from the IPO will be used to build new fixed wireless network in Warsaw and to increase the number of interconnection points with other operators. The firm also said it wants to launch prepaid phone card services this summer.

Construction

Mostostal Zabrze closer to bankruptcy

Mostostal Zabrze building contractor has to pay a substantial fine after a court ruling against the company in debt-reduction proceedings. Silesia-based company was supposed to buy large stake in PRInż road-building group from Cresco Financial Advisors, which is now demanding 20 million zloty for non-payment. Representatives of Mostostal, whose stock once traded as part of WIG20 index say the verdict will make it much harder for the company to regain financial stability.