ARP puts a high price tag on its PHS bonds

The Industrial Development Agency (ARP) and Polish Steel Mills (PHS) reached an agreement over the terms of the concern's liabilities. According to recent plans, PHS' debts to government organizations, which are in the form of bonds due to mature in 2007, should be bought out by an investor. However, the ARP is not happy with the maturity value of zł. 300-400 million and wants zł. 550 million for the bonds. "The Agency can sell the liabilities to an investor, or transform them into PHS shares and sell them later to an investor if he agrees to pay the quoted price," said ARP president Arkadiusz Krężel. Neither representatives of PHS nor LNM Holding, which wants to buy the concern, did not want to comment on the idea. Taking over some of steel company shares would solve part of the Treasury's and trade unions problems connected with supervising the investor in meeting EU agreements. On Friday the Treasury will make a final decision on what direction to choose for PHS. (Puls Biznesu, p. 3) M.M.