Agreement with Ispat on steel mills' privatization possible by month's end

The Economy Ministry says that a framework agreement may be signed with Ispat of India by the end of the month on the sale of Polskie Huty Stali (PHS), the steel conglomerate that is due to be set up at the beginning of 2002. Ispat has already submitted a binding offer with the Treasury for the purchase of a majority stake in PHS, which will consist of four steel mills, Katowice, Sendzimir, Cedler and Florian. Deputy Economy Minister Edward Nowak, who is responsible for the privatization of the steel sector, has said he hopes to conclude the talks with Ispat with a formal agreement by September 30. According to Nowak, "The most probable date for creating the PHS concern is January 2002." But he added that a threat to the deal was posed by the financial situation at the Katowice and Sendzimir mills. (Puls Biznesu, p. 14) P.W.