News Parkiet

Telecommunications

Delays may hurt Polkomtel sale price,

analysts say

Polish shareholders of Polkomtel are no longer meeting to discuss sale of the country?s third largest mobile phone company. The group, which includes KGHM mining conglomerate, PKN Orlen refinery and PSE power grid operator has a combined 66 percent of Polkomtel. KGHM?s 19.6 percent stake alone is worth an estimated 3.4 billion zloty ($870 million), says Erste Securities. Sources say special committee appointed by the group hasn?t met in weeks and the deadline to select investment bank to manage the sale has run out in early March. Possible candidates include J.P. Morgan, Rothschild, CSFB, ING/Lazard, Citigroup and ABN Amro.

At least one analyst watching the situation says Polish shareholders can?t agree on a joint sale because of their stakes in fixed-line phone companies. Michał Mierzwa from Erste Securities cites PSE, which has a stake in various long-distance and data carriers while KGHM is the sole owner of Telefonia Dialog, a local phone company.

Time for the sale is running out, Mierzwa says, because competition and heavy spending on 3G networks could erode market value of the existing mobile phone companies.

Banking

BCP says non-Iberian bank could make

a hostile bid

Banco Comercial Portugues, majority shareholder of Poland?s Bank Millennium said a ?non-Iberian? bank could make an unsolicited takeover bid for Portugal?s second largest bank. Potential bidder recently sold another financial institution in the US, so it has lots of money, BCP chairman Jorge Jardim Goncalves said. Local media sources in Portugal say Belgium?s Fortis group is the most likely suitor. Fortis, which owns publicly traded Fortis Bank Polska, one of Poland?s top 20, recently listed Assurant insurance company in the US, raising 1.8 billion dollars.

Banking

Bank Austria sees 15 pct. earnings growth

Bank Austria Creditanstaldt expects 15 pct. increase in earnings before taxes this year, company representatives said yesterday. The bank, which is listed both in Vienna and on Warsaw Stock Exchange plans earnings of 750 million euros, or 5.1 euro per share partly because of stronger mortgage lending in Central Europe.

Banking

Sentiment index down because

of lower savings rates

Pengab banking industry sentiment index was down 3.2 points to 26.5 points in April because of lower savings rates among retail clients. Pentor research institute, which publishes the index now expects further decline in May. Pengab is based on monthly surveys among banking managers across Poland.

IPOs

DGA expected to start trading above 30 zloty

Shares of DGA Doradztwo Gospodarcze consulting firm are expected to start trading at 30 zloty or more today after a highly successful IPO that was twenty times oversubscribed by retail investors. Poznań-based company, one of Poland?s largest independent business consulting and privatization advisors raised 15.4 million zloty ($4 million) before IPO costs selling 560.000 shares priced at 27.5 zloty each.

BDM PKO BP, which managed the sale says the stock is worth at least 29.9 zloty

Separately, DGA said preliminary figures show its 1Q earnings rose 74 percent to PLN 1.08 million. Sales more than doubled to PLN 6.2 million

Power industry

No new developments at Zespół Elektrowni PAK

Shareholders of Zespół Elektrowni PAK power plant made no decisions on how to pay for Pątnów 2, a new power block after a three-hour meeting yesterday. Elektrim group, which has approximately 41 percent of one of Poland?s largest power plants said earlier it would use the time off since similar meeting three weeks ago to arrange financing to resume construction at the plant.

Power industry

Elektrim signs extends energy trading contract

Elektrim power and telecoms conglomerate has signed a new annex to the existing energy trading contract with Polskie Sieci Elektroenergetyczne, which operates Poland?s power grid and Austria?s OEAG power trading group. Sources at the company refused to disclose additional details, but total value of the transaction is estimated at 140 to 160 million zloty in 2004/2005.

Elektrim, which recently took over energy trading business from its subsidiary Elektrim-Volt will collect commission for arranging the sale.