News Parkiet

Mining

KGHM falls on controversial statements

by new CEO, copper prices

Shares of KGHM copper-maker plunged 10 percent in just two days after new CEO Wiktor Błądek said dividend payments are not a priority despite record earnings. The day earlier Błądek suggested mine employees can expect another round of wage hikes. His statements coincided with the decline in copper prices on the international markets, down 5 percent on Wednesday alone.

Politics

Marek Belka picks future cabinet members

Future prime minister Marek Belka will almost certainly retain services of the existing finance minister Andrzej Raczko, SLD sources told PARKIET yesterday. Other key appointments in Belka?s shadow cabinet include BGŻ Bank CEO Jacek Bartkiewicz and the existing deputy prime minister Jerzy Hausner.

Pharmaceuticals

Recordati raises its bid for Polfa Kutno

Italian drug-maker Recordati has raised its bid for the 49.9 percent stake in Polish pharmaceutical company Polfa Kutno from 287 to 310 zloty in response to a counterbid by US Ivax Corp. ?This is our best and final offer (for Polfa)?, CEO Giovanni Recordati said responding to speculations about the possible bidding war.

Banking

PKO BP reports higher earnings

State-owned lender PKO BP reported first-quarter earnings of 408 million zloty (105 million), up 23 percent from the same period last year. Return on equity rose to a record 31.9 percent thanks to lower provisions on bad loans, higher interest income and banking fees. Chief Executive Officer Andrzej Podsiadło said the bank will be ready to file for IPO this summer.

Banking

ING Bank Śląski reduces earnings for 2003

ING Groep?s Polish subsidiary ING Bank Śląski has reduced last year?s earnings from 50.1 to 28.7 million zloty because of delays in expected legislative changes that would allow the bank to reduce future income taxes. ING Bank Śląski also said it would cut its dividends from 2.4 to 0.8 zloty per share.