News Parkiet

Equity market

Brokers? association picks new board,

old problems remain

ZMiD brokers? association has made no decisions that could save the organization. Its annual meeting last Saturday has elected new board, chaired by Jacek Maciejewicz from Raiffeisen group. Mr. Maciejewicz was the sole candidate for the position, reflecting general disillusionment with ZMiD among Polish stock brokers. Turnout was very low, with just 76 brokers and investment advisors participating in ten-hour event. ZMiD has almost 1300 members. Debates during Saturday?s meeting focused on the financial situation and alleged improprieties that could force ZMiD to liquidate its operations.

Petrochemicals

Orlen to spend PLN 1 bn

on new gas stations

PKN Orlen oil refinery has announced plans to spend as much as one billion zloty ($270 million) to build 150 new gas stations across Poland by 2006. The refiner will close down 300 retail outlets that don?t generate enough sales due to poor location. PKN now has 1319 gas stations.

?The main goal for us is to maintain 40 percent market share of the retail market?, vice CEO Sławomir Golonka said yesterday.

Privatization funds

BE4 to buy 10 percent stake

in Siódmy NFI

BE4 holding company has made a cash bid of some 6 million zloty for 10 percent stake in Siódmy NFI privatization fund. Management-owned company is offering 2 zloty per share. This represents 19 percent discount to NFI?s latest price before the stock was suspended by the Warsaw bourse for the rest of the day. BE4 already owns 25 percent of Siódmy NFI

The company, a special purpose vehicle set up by Siódmy NFI?s CEO Piotr Adamczyk and former executive of Commercial Union?s Polish life insurance firm has already made a similar bid in September of last year.

Siódmy NFI controls assets worth some 91 million zloty, including about 30 million zloty in cash and other liquid assets and minority stakes in ten wood industry and metal companies privatized in mid-1990?s.

Cable industry

Aster City?s earnings up

Warsaw?s main cable company, Aster City Cable has more than doubled its operating earnings last year, CEO Janusz Arciszewski told PARKIET in an interview. The company, controlled by three US investment funds posted net earnings of 28 million zloty. Its operating earnings rose to 41.7 million, while sales were up to 171.5 million zloty.

Aster City has over 280.000 cable TV and 40.000 broadband subscribers in and around Polish capital. The firm wants to launch its own digital cable TV service later this year.

Power industry

Relpol earnings on target

Publicly traded Relpol group said on Monday the company made 4.2 million zloty last year despite negative impact of stronger euro. Operating earnings reached 10 million zloty, up by one million zloty compared with the previous forecast, while sales rose to 90.2 million zloty. Fears that Relpol will have to lower its earnings forecast have kept down its stock price on the Warsaw bourse in recent weeks.

On Monday its stock was up 3.1 percent, closing at 77.3 zloty.

Relpol makes industrial control systems, relays and other electrical components exported to Western Europe.

Utilities

Dalkia still interested in ZEC Poznań

Electricite de France subsidiary Dalkia Termika says it is still interested in buying majority stake in ZEC-P heating utility despite union efforts to block privatization of the company.

Dalkia-led consortium is offering 350 million zloty for ZEC, which provides heating in the city of Poznań.

ZEC Poznań trade union activists have tried to block the sale after Dalkia rejected their demands for a new employee benefits package.

Equity market

Larger corporate boards planned

for WSE companies

Publicly traded companies will pay more for their boards of directors. Polish parliam