News Parkiet

Equity markets

SEC looks into Brok-Strzelec offering

Polish SEC is looking into possible irregularities related to secondary stock offering by Brok-Strzelec, a regional brewery from southern Poland. Brok-Strzelec decided to give new shareholders right to buy convertible bonds at preferential terms without prior approval by existing shareholders. Some legal experts say last-minute change is contrary to Polish securities regulations and company?s own resolutions to sell new stock.

Brok-Strzelec wants to sell up to 25 million shares priced at 1.9 zloty each.

Media

Agora to fire 500 employees

Agora newspaper publisher has announced plans to fire about 500 employees by the end of June. The company, which owns Poland?s most popular paper "Gazeta Wyborcza" said it has to continue restructuring efforts in response to ?changing market conditions?.

Agora?s main publishing business has a staff of more than 3000 employees.

Insurance

Eureko raising money to buy PZU

Pan-European insurer Eureko said it would sell part of its stake in UK mutual fund management firm F&C Management, raising cash for possible acquisitions. The Netherlands-registered insurance group said it would consider listing between 25 and 49 percent of F&C Management.

Eureko spokeswoman Lorrie Morgan said some of the proceeds could be used to increase its stake in Poland?s top insurance firm, PZU S.A.

Eureko together with Banco Comercial Portugues-controlled Millennium Bank own 31.8 percent of PZU.

Telecommunications

Netia buys El-Net from BRE Bank

Poland?s second largest local phone company Netia bought competing El-Net group, strengthening its position as top alternative business carrier in Warsaw area. Netia paid 96.5 million zloty in cash for El-Net to BRE Bank, which seized the company after it failed to pay back some of its debts.

El-Net adds about 61.000 subscribers in Warsaw and in western Poland to Netia?s 340.000 customers.

Netia said in a statement, El-Net posted sales of 115 million zloty in 2003. Its EBITDA reached 24 million zloty.

Netia?s stock was suspended briefly by the Warsaw bourse after mid-session announcement. Its shares later rose 3.5 percent to close at 4.43 zloty.

Advertising

Clear Channel claims 15 pct market share

Clear Channel Poland, one of top five outdoor advertising companies in the country estimates its market segment was worth as much as 350 million zloty in sales last year. CCP itself has approximately 15 percent market share, says CEO Kalina Janicka without disclosing its financial data.

CCP was formed after the merger of six Polish outdoor advertising firms purchased by Clear Channel Communications. San Antonio, Texas-based media company spent an estimated 40 million dollars on takeovers in Poland over the last four years. CCP says it has no immediate plans to diversify into other media or advertising segments.

Mining

KGHM sees 60 pct earnings growth

KGHM copper producer earned an estimated 400 million zloty or at least two zloty per share last year, the company said in a statement mailed to Polish investors Thursday morning. State-owned group lost over 200 million zloty ($53 million) in 2002 because of losses posted by Telefonia Dialog, a wholly owned fixed line telecom unit.

Poland?s only publicly traded mining company said it expects net earnings to rise by as much as 63 percent to 652 million zloty in 2004. Sales are set to rise to PLN 5.15 billion.

KGHM accounts for approximately 3.5 percent of world copper production.

Public finances

EU-related budget gap seen higher

Polish government could lose as much as 2.6 billion zloty in tax income due to changing VAT tax regulations after the country?s EU accession in May of this year.

New excise tax law will allow corporations to postpone VAT tax payments, causing XL Insurance corporate insurer filed for regulatory permits to start selling insurance products in Poland, sources told PARKIET yesterday. Its application is being delayed by administrative changes at the Polish Finance Ministry.