News Parkiet

Equity markets

WSE interested in Lithuania's

national exchange

Warsaw Stock Exchange may be interested in buying a controlling stake in its Lithuanian counterpart, WSE president Wiesław Rozłucki said yesterday. Rozłucki says the Polish bourse may join a consortium that would make a bid for the Lithuanian stock exchange.

Lithuanian authorities approved plans to sell its ten-year old National Stock Exchange, asking 1.2 million dollars for 54,5 percent stake in the local bourse. The government is also selling 32 percent stake in the securities' depository for an estimated 1.5 million dollars.

National Stock Exchange based in Vilnius has a total market capitalization of about 6 billion dollars. The bourse lists 46 local stocks.

Insurance

Belgium's KBC takes control of Warta

Belgian bancassurance group KBC said on Thursday it had raised its stake in Polish insurer Warta to more than 50 percent, strengthening its position in the country's insurance market. KBC bought 11 percent stake in the firm after making a deal with Kulczyk Holding, an investment company controlled by Polish businessman Jan Kulczyk.

KBC, which also owns second-tier retail lender Kredyt Bank S.A., said it would make a public bid for all outstanding shares it doesn't already own to comply with Polish stock exchange regulations.

Petrochemicals

Orlen to push for quick merger with MOL, Wróbel says

PKN Orlen refinery wants to complete possible merger with Hungary's national oil company MOL 'as quickly as possible', Orlen's CEO Zbigniew Wróbel said at an industry conference yesterday. Orlen's Chief Executive Officer adds that 2005 is a 'realistic' date for the merger of two state-owned firms. MOL and Orlen signed a letter of intent outlining plans for closer ties two weeks ago.

Wróbel's announcement made no impression on Polish investors. Shares of PKN Orlen, Poland's third largest company by market capitalization fell 2.8 percent to close at 24.1 zloty.

In a separate development, news agencies reported that Orlen's board of directors is considering another management reshuffle. One source close to company's key shareholders says both Wróbel and his deputy Sławomir Golonka could lose their jobs.

Banking & Finances

Kulczyk to take over Bank Przemysłowy

next year

Polish banking supervisory authority KNB has extended the term of special administrator appointed to restructure Łódź-based Bank Przemysłowy. KNB is expected to formally approve Bank Przemysłowy's takeover by Polish businessman Jan Kulczyk at its next meeting in January. Privately-held bank says it needs a special 400 million zloty loan from Banking Guarantee Fund to raise its equity.

Kulczyk already controls the majority of seats on Przemysłowy's board of directors.

Banking & Finances

BRE still interested in Rheinhyp

mortgage bank

BRE Bank and Eurohypo have extended their deadline for negotiations on the sale of 50 percent stake in Rheinhyp-BRE mortgage bank, Polish firm said in a recent press statement. Sources say the deal was postponed due to administrative delays.

BRE already owns half of Rheinhyp-BRE, Poland's first specialized mortgage bank. Analysts say Eurohypo's stake may be worth approximately 100 million zloty ($25 million).

Civil engineering

Mostostal Płock asking for a raise

Mostostal Płock construction group went to court against the general contractor building a bridge across Vistula river. Publicly traded company is asking PPRM for an extra 6.1 million zloty due to rising cost of materials and lower design requirements. Mostostal signed a 35-million zloty contract to build steel components for the bridge in October 2002.