News Parkiet

Equity markets

ING Bank Śląski in the spotlight

over Szczecińska?s bond default

ZASP artists association says poor investment advice by ING Bank Śląski has cost it 9.5 million zloty after it purchased bonds issued by one of ING?s creditors. The association has asked Polish SEC to investigate ING Bank Śląski, which managed 100-million zloty bond issue by Stocznia Szczecińska shipyard. The bank kept selling Szczecińska?s bonds right until the group collapsed, defaulting on ZASP investments.

ING Bank Śląski refused to comment on speculations that proceeds from the bonds it sold to various clients were then used by Stocznia Szczecińska to repay its debts, minimizing ING?s losses.

Construction industry

Hydrobudowa?s managers detained by ABW

Warsaw bourse has suspended trading in shares of Hydrobudowa Śląsk engineering group yesterday on news that three senior executives of Katowice-based company were detained by ABW secret police. All three, including its CEO Józef T. plus his former deputy are charged with asset stripping in an attempt to take over the company. ABW claims Hydrobudowa?s siphoned off much of its cash to outside firms, which then bought stakes in publicly traded firm. The group then engineered massive, highly leveraged share buyback to seize control over the company.

Privatized in mid 1990?s during the NIF program, Hydrobudowa Śląsk has market capitalization of 30 million zloty and annual sales of approximately 100 million zloty ($25 million).

Privatization

Poland to sell remaining stake in TP

to France Telecom, Treasury Ministry says

France Telecom is interested in 4 percent stake in Poland?s national phone company Telekomunikacja Polska still in the hands of the Polish government, Polish Treasury Minister said on Tuesday. The transaction may be closed as early as this month, Piotr Czyżewski said before the Polish parliament yesterday.

Poland sold an 8.6 percent stake in former government monopoly to a group of international investors in early November.