News Parkiet

Pharmaceuticals

Foreign competitors may outbid Polfa in local takeover

International drug-makers are almost certain to outbid top Polish pharmaceutical company Polfa Kutno in its attempt to buy a stake in publicly traded Jelfa ointment maker from the government. Polfa offered to pay 49 zloty per share in a 100-million zloty bid for 30 percent stake in Jelfa. Analysts now say the other five bidders, who include Israeli Teva, US-based Ivax and Italy?s Recordati could pay as much as 70 zloty per share for the company. Jelfa?s stock now trades at just over 60 zloty per share.

Insurance

Private investors? group

may buy Royal PBK

A group of private investors with ties to insurance industry is negotiating the purchase of a controlling stake in Royal PBK life insurer from UK-based Royal & Sun Alliance, sources close to the transaction told PARKIET yesterday. The buyers are reportedly offering just 10 million zloty for an 82 percent stake in Royal PBK. Its parent company has already invested 127.5 million zloty ($32.7 million) in money-losing venture since 1998.

Royal PBK?s other major shareholder, BPH Bank has already written off most of its investment and is refusing to participate in new equity issues to keep the company afloat.

Royal PBK has a marginal, 0.32 percent stake in Poland?s life insurance market.

Equity markets

PBG to file for IPO

Poznań-based pipeline maintenance company PBG has announced plans to list its shares on the Warsaw Stock Exchange sometime in the summer later this year. Founded ten years ago as a family business, PBG has annual sales of more than 150 million zloty, with high single-digit net margins.

Chemicals

BASF could open new plant in Poland

Germany?s BASF chemicals group is considering Poland as the new location for lysine amino acid production plant. The project would inject ?several hundred million euro? in the local economy around the planned location at ZA Puławy industrial park south of Warsaw.

Its Polish subsidiary BASF Polska already generates annual sales of approximately 1 billion zloty ($260 million) selling animal feed and household cleaner components.

BASF Polska has a local staff of about 200 employees.