Alvernia spin-off deal could pull plug on Ciech's plans to go public this fall

The State Treasury, which owns 52% of the company's shares, wants Ciech to present a clear strategy concerning the final shape of the share issue, which has not yet been presented. Furthermore, Tadeusz Soroka, the deputy State Treasury Minister, is seeking talks with Ciech's executive board to discuss the contentious issue of spinning off its Alvernia chemical plant, which does not fit in with the new profile Ciech wants to adopt, viz the production of soda and phosphate fertilizers. The State Treasury has proposed buying out Ciech's stake in Alvernia in return for a stake in its soda activities. However, it is doubtful as to whether such a move would go down well with shareholders and thus gain their approval in a ballot. (Puls Biznesu, pp. 1, 7) J.J.