News Parkiet

Power industry

Elektrim has until March 28 to present

strategy for ZE PAK

Elektrim power and telecoms group has until March 28 to present a credible strategy to build new power block at Zespół Elektrowni PAK power plant, Polish government officials said yesterday. Unless Elektrim manages to secure financing to complete the project, Polish Treasury Ministry could transfer part of its stake to another investor, possibly state-owned PSE power grid-operator. Elektrim?s main shareholder, Polish media magnate Zygmunt Solorz welcomed the idea of a new shareholder at ZE PAK, one of two key assets of Warsaw-based conglomerate. Elektrim controls approximately 38.5 percent of the company, while the government holds a similar stake.

Insurance

Eureko may claim up to 1 bn euro

in compensation for PZU

Pan-European insurance group Eureko says it may claim up to 1 billion euros in compensation from Poland over delays in the sale of 21 percent stake in the country?s main insurer, Grupa PZU. Postponement of the privatization sale by successive Polish governments has delayed Eureko?s own international IPO.

Equity markets

Penny stocks disappearing from WSE

The number of penny stocks traded on the Warsaw bourse is disappearing rapidly. Not because they are going under - it?s been over six months since a company was delisted from the WSE because of bankruptcy.

Since January 1st all but two of the fifteen stocks trading under one zloty per share rose above that threshold, lifted by rising interest from traders with a more speculative bent for equities.

The best performer, Próchnik apparel maker rose 354.5 percent in just ten weeks after signing a large contract with Hugo Boss. However, several other stocks doubled or even tripled their value for no apparent reason.

Telecommunications

Pilicka?s loss narrows to PLN 12.8 million

Net loss of US-controlled Polish Competitive Local Exchange Carrier (CLEC) Telefonia Pilicka fell from 14.4 to 12.8 million zloty last year as the company increased sales and cut interconnection fees. Financial data published by Pennsylvania-based D&E Communications, which has a 38 percent direct and indirect stake in Pilicka shows the carrier managed to increase sales by approximately 2 percent to PLN 39.5 million ($10 million). Pilicka operates mainly in rural areas in south central Poland. Since March 1998 Pilicka has signed up approximately 36.000 subscribers. Several years ago Polish conglomerate Elektrim offered to pay as much as 140 million dollars for Pilicka. It backed down from the deal after the Internet bubble collapsed, but was forced to pay 40 million dollars in compensation plus interest and legal fees to Pilicka?s owners.

Information Technology

Oracle?s Polish unit posts higher 3Q earnings

Oracle Polska, local subsidiary of top US database maker posted 20 percent sales growth in the third quarter of fiscal 2004, ending in February. The company doesn?t publish detailed financials, but said in a press release contracts with telecoms and financial industry clients, as well as public administration accounted for 70 percent of new license sales.

Mining

Kopex bidding for Israeli contract

State-owned Kopex mine construction company is negotiating a large contract in Israel with Spain?s Dragados road construction group. Sources at publicly traded Kopex say the group has made a bid to build road tunnels as subcontractor for the Spanish firm. The contract is reportedly worth ?between 10 and 20 million dollars? In addition to the Israeli contract Kopex has made a 162-million dollar bid for a Vietnamese coal mine and a large cement plant in that country.

Media

DM BZ WBK cuts Agora?s target price

to 49 zloty

Dom Maklerski BZ WBK brokerage house has reduced its target price for Agora, Poland?s top newspaper publishing company to 49 zloThe broker has reiterated its ?neutral? rating for the stock. On Wednesday Agora closed at 41.3 zloty after edging up 1.2 percent.

Information Technology

Solidex earnings up 9 pct. last year

Net earnings of Solidex S.A. IT services group rose 9 percent to 11.7 million zloty ($3 million), sources at the company told PARKIET yesterday. Sales wer up 20 percent to PLN 200 million. Privately held Solidex continued its expansion outside Poland, setting up local subsidiaries in Germany and Belarus.