PKN-Lotos merger should bring savings of 800 mln zlotys a year - PKN CEO |
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Mon, 27 Aug 2007 08:50
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WARSAW (Thomson Financial) - A merger between Poland's oil refiners PKN Orlen and Grupa Lotos should bring savings of 800 mln zlotys a year within five years, PKN chief executive said.In an interview published in Saturday's edition of Rzeczpospolita daily, PKN's Piotr Kownacki pegged possible merger costs at 'tens of millions of zlotys.''For sure we would be talking of tens of millions of zlotys,' Kownacki told Rzeczpospolita. 'Besides we still don't know if we won't prepare a share issue in connection with the merger.'PKN's chief is currently on a charm offensive to convince the government to merge the two refiners as part of an attempt to fend off competition from foreign oil majors.The two companies have held talks on various forms of cooperation, adding that any moves toward a merger would be up to the treasury. But the new elections, planned later this year, would postpone any possible merger talks, and Lotos chief executive Pawel Olechnowicz remains sceptical about the issue.'If the merger were to materialise in the nearest term, it would be harmful for our investment program and would generally yield losses instead of profits,' Olechnowicz told Rzeczpospolita. 'Both companies are not ready for this.'adrian.krajewski@thomson.com +48 22 447 2430ak1/vlbCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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