BRE Bank's sale of Elektrim shares challenged

A group of Elektrim shareholders represented by the American Highwood Partners fund has published a report in which they question the legality of a contract which allowed Polsat and TCF to purchase a 17% stake of Elektrim from BRE Bank and Zygmunt Jakubas in February. The fund demands that the Polsat group announces a public call for the purchase of the remaining Elektrim shares from BRE Bank, which after the transaction still holds around 3% of shares, for zl. 9 a share. Highwood Partners has also filed a law suit against Polsat and BRE in the Warsaw district court in an attempt to block their voting rights during the planned Shareholders Meeting on April 4. Highwood Partners believes that Polsat and TCF broke the law by cooperating on the purchase of the stake without a public call. The fund also has requested that the Securities and Stock Exchange Commission examine the contract. (Gazeta Wyborcza, March 22-23, p. 29) A.K.