News Parkiet

Privatization

Mining agency sells 1.9 pct.

stake in Telekomunikacja Polska

State-owned mining agency Kompania Węglowa sold 27 million shares of Telekomunikacja Polska, Central Europe?s largest phone company in a series of after hours transactions arranged with institutional investors. Kompania sold its stake at 15.4 zloty per share versus Friday?s closing price of 16.35 zloty raising over 100 million US dollars. Polish Treasury and Kompania itself said earlier TP shares won?t be sold at least until April 17. On Friday its spokesman explained Kompania had to sell the stock because it needed the money to pay bonuses to employees.

Steel industry

Prosecutor investigating stock manipulation

at Huta Ferrum

Five shareholders, a stock broker and an equity dealer with ties to TFI Colloseum investment holding are about to be charged with manipulating the stock price of Huta Ferrum four years ago, sources close to the situation told PARKIET on Friday. District attorney in Katowice in southern Poland says the group pumped up Ferrum?s stock in May 2000 in order to sell large blocks of shares in after hours trading. Polish securities regulations allow investors to make large block trades after the market close as long as the price stays within preset range of the closing price in regular trading.

Equity markets

AmRest planning fall IPO in Warsaw

Owner of Polish and Czech fast food chains AmRest Holdings says it is working on IPO details on the Warsaw Stock Exchange. The company, which operates Pizza Hut and KFC franchises says it plans to raise at least 30 to 40 million dollars from the IPO, scheduled for the fall of this year.

One senior executive at AmRest said the company will pick an underwriter to help it sell new stock within a couple of months. AmRest has about 140 restaurants in Poland and in the Czech Republic and plans to open 15 new outlets a year until 2007. Founded in 1993, AmRest posted its first ever earnings of 3 million zloty last year. Its EBITDA rose 25 percent to 51 million zloty ($13.2 million) on sales of approximately 430 million zloty.

Retailing

Coffeeheaven sales up 57 pct.

Coffeeheaven International, operator of coffeehouse chain in Poland reported on Friday full-year sales to March were up 57 percent to 15 million zloty ($3.9 million) after the company opened several new outlets. Coffeeheaven, which is listed on UK?s AIM market said it will open up to 18 new outlets in the Czech Republic by the end of 2007.

Banking

ING Bank Śląski names Brunon Bartkiewicz

as new CEO

ING Bank Śląski, the Polish subsidiary of ING Groep said it chose Brunon Bartkiewicz as new chief executive after Marian Czakański decided to step down several days ago. New CEO will have to be approved by Polish banking supervisory authorities. Bartkiewicz served as the head of ING Bank Śląski several years ago and has worked for the company since 1991.

FDI

Whirlpool selects Poland for 132 million euro investment

Whirlpool Corporation, the world?s largest home appliance maker said it will build a new 132 million euro factory in Poland on Friday. The company will build kitchen stove factory creating about 1000 new jobs in the city of Wrocław, the capital of Lower Silesia. Polish authorities promised the company massive tax breaks and cash subsidies to attract the investment.

Information Technology

MCI Management tries to revive

bankrupt PC maker

MCI Management venture capital fund announced on Friday it will take operational control of JTT Computer, a bankrupt PC-maker from Wrocław. Publicly traded fund has already prepared a restructuring plan to pay JTT?s creditors using money from VAT tax refunds and sale of surplus assets as well as partial debt for stock swap. MCI already owns 36 percent of JTT Computer, which went bankrupt earlier this year after a lengthy dispute with the tax authorities over VAT tax payments. The company won its battle with Wrocław Tax Office, but lost liquidity anyway after the authorities seized its bank accounts.

Retailing

KrakChemia looking for another buyer

for Kraków property

Publicly traded retailer KrakChemia S.A. says it will start looking for another buyer for large commercial property at ul. Pilotów street in Krakow. KrakChemia, which runs small supermarket chain in southern Poland had to give up 3.2 million zloty advance payment it received in 2001 from ExxonMobil Poland after the buyer tried to lower the selling price.