News Parkiet

Petrochemicals

Poland to reconsider PKN, Grupa Lotos merger

Polish government has fired the head of Nafta Polska oil industry privatization agency as it pushed for merger between the country's two main oil refineries, PKN Orlen and Grupa Lotos. Maciej Gierej and two other senior executives were dismissed one day after the Treasury Ministry replaced four of its board members at Nafta. Gierej, who chairs PKN Orlen's board of directors suggested he may try to fire influential CEO Zbigniew Wróbel despite Treasury's backing for PKN's chief executive.

Hours after Gierej's ouster, Treasury Minister Zbigniew Kaniewski said his department will work on a new plan to consolidate Nafta's oil industry assets, including a minority stake in PKN and a controlling stake in Gdańska refinery-based Grupa Lotos, plus four smaller refineries in the south and Petrobaltic oil exploration company.

Industry watchers say Friday's boardroom coup at Nafta Polska and PKN's takeover of its main domestic competitor would pave the way for a much larger deal with Hungary's MOL. The two groups have until the end of April to agree on terms of a possible merger.

Equity market

DGA to raise 15.4 million zloty in an IPO

DGA Doradztwo Gospodarcze consulting group priced its initial public offering at 27.5 zloty, the company said in a statement to investors mailed late Thursday after a book-building process. The firm has set an initial price range at between 23 and 30 zloty. Poznań-based DGA wants to sell as many as 560.000 shares, raising an estimated 15.4 million zloty before underwriters' fees. This year's third IPO starts Monday.

Pharmaceuticals

Analyst raises target price for PGF drug

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PKO BP's brokerage house Bankowy Dom Maklerski has raised its target price for top Polish drug wholesaler Polska Grupa Farmaceutyczna (PGF) to 60.1 zloty, reiterating its 'buy' rating. The broker estimates this year sales at PGF will rise to a record 3.9 billion zloty ($1 bn). Earnings are set to rise to 50 million zloty. Shares of PGF, which is part of WIG20 blue-chip index were up 1.2 percent to close at 51.4 zloty in Friday's trading.

Automotive industry

Rover still interested in former Daewoo plant

MG Rover will present its business-plan for Warsaw-based car factory formerly owned by the now insolvent South Korean Daewoo Motor by Monday, Polish authorities announced on Friday. Deputy Economy Minister Jacek Piechota expects other bids from potential investors. State-owned plant has already agreed to lay off about 800 employees as part of post-bankruptcy restructuring process. Polish government took over Daewoo's Żerań plant after the bankruptcy of its parent company.

Advertising

Outdoor competitors form market research group

Two key Polish outdoor advertising firms have agreed to set up PBO market research advertising company to promote common industry standards and attract new clients. Agora subsidiary Art Marketing Syndicate (AMS) and Clear Channel's Polish unit will distribute analytical reports and advertising data to improve their positions during negotiations with local media houses.

Expert-Monitor media research group says outdoor advertising accounts for just a few percent of Poland's advertising market.

Telecommunications

PTC unveils new prepaid cellular service

T-Mobile subsidiary Polska Telefonia Cyfrowa launched a new prepaid mobile phone service designed for teenagers. The new service, branded 'Heyah' offers straightforward calling plan. Calls within PTC network will cost 0.68 zloty per minute ($0.17, VAT included), while outside calls are priced at PLN 0.98 per minute. 'Heyah' can be used by subscribers who already own their own mobile phone after PTC decided it would reduce subscriber acquisition costs by cutting discounts on new wireless phones.