Budimex will defend itself in event of hostile takeover

Kredyt Bank PBI and Templeton Investment Fund, which control Budimex, claim the merger is unprofitable. "The main reason is that Budimex's low share price on the stock exchange does not reflect the firm's actual value," said Budimex president Marek Michalowski. He added that the firm may consider a merger with a Polish or foreign firm but only when the market price rises to a level close to the current Exbud price. "I would prefer Budimex to take over some other company," added Kredyt Bank PBI president Stanislaw Pacuk. Earlier this week, Exbud said the merger would incorporate Budimex into Exbud, with the latter issuing shares to Budimex shareholders. (Gazeta Wyborcza, page 32, Reuters)