News Parkiet

Banking

Citibank benefits from contracts

with Bank Handlowy

Citibank Polish unit Bank Handlowy admitted on Tuesday it paid 5.4 million dollars between January and April for the use of consulting, legal, accounting and IT services of its parent company and other Citi subsidiaries around the world. Handlowy, which is 90 percent owned by Citibank also said it extended contracts with other Citibank subsidiaries. The fees represent over a quarter of Handlowy?s last year earnings. At least one independent analyst, WSE director Raimondo Eggink says Handlowy should provide more information about Citibank services.

Petrochemicals

PKN?s bid for Unipetrol approved

by Czech government

PKN Orlen refinery won approval from the Czech government for its $476 million offer to buy 63 percent stake in Unipetrol, Czech Republic?s national oil company. Under the Czech law, Orlen will have to make an offer to minority shareholders of publicly traded Unipetrol. Orlen will use bank loans to finance the transaction, sources close to the situation said yesterday.

Manufacturing

Krosno to invest in Sławuta glass factory

in Ukraine

Krosno glass factory is planning to invest several million dollars to restart bankrupt Sławuta glass-making plant in Ukraine. Publicly traded Krosno says it will hire about 200 staff at Sławuta, which closed down in mid-1990?s after running out of cash to continue production.

Real estate

GTC stock sale five times oversubscribed

by retail investors

Globe Trade Centre, a Polish real estate company with extensive asset portfolio in southern Warsaw has set final IPO price at 87 zloty per share, at the upper end of initial pricing range. Based on Wednesday?s IPO price, GTC will have market value of approximately 430 million dollars. About 4000 retail investors signed up for almost 400 million zloty worth of GTC stock, or five times the number of shares offered by existing major shareholders.

Privatization funds

NFI funds ?massively undervalued?,

investment analyst says

Three NFI privatization funds controlled by Poland?s largest insurer, Grupa PZU are trading at a huge discount to their fair value, says investment analyst following the stocks. Mr. Andrzej Kosiński, who holds the title of Chartered Financial Analyst says the discount reflects either the fears of minority investors that PZU will sell the funds without sharing extra gains, or because the market is not efficient enough to notice investment opportunity in the long-forgotten sector.

Drugi NFI, NFI Progress and NFI Kwiatkowski are among fifteen privatization funds listed initially on Warsaw Stock Exchange in mid-1990?s to help Polish authorities distribute state-owned assets. In addition to their own stocks, the funds own substantial cash holdings and government bonds, as well as shares in PZU and minority stakes in various publicly traded and private firms. Mr. Kosiński owns the stock of Drugi NFI and NFI Kwiatkowski.

IPOs

Oleje Sudeckie may list its stock

on the WSE

Oleje Sudeckie Canola oil-maker is planning to list its shares on the Warsaw Stock Exchange, raising up to 50 million zloty to finance market expansion. Southern Polish company now has over 6 percent of the domestic market, with annual sales close to 60 million zloty ($16 million). Oleje Sudeckie is wholly owned by Polish-UK Hals Fundusz Kapitałowy venture capital fund, which paid an estimated 6 million zloty for the company over four-year period.

Equity markets

Manometry doubles in one day,

SEC investigating

Shares of thinly traded Kujawska Fabryka Manometrów gauge-maker surged 84 percent to 73.7 zloty on Wednesday despite warning by the Polish Securities and Exchanges Commission it is investigating possible stock manipulation. The SEC said it will ask district attorney?s office in Warsaw to fiManometry is up about 800 percent since mid-April despite the absence of any new information about Włocławek-based company.

Central European Gauges Holding, a private equity fund, has almost 99 percent of Manometry?s 1.8 million outstanding shares. Sources at Manometry refused to comment on the unexpected rally. Based on Wednesday?s closing price, Manometry has market capitalization of approximately 130 million zloty, or nine time the company?s book value.