Cash rich Russian Lukoil wants majority stake in PKN

Stock exchange analysts are sure that Polish oil producer and distributor Polski Koncern Naftowy (PKN) Orlen will need a strategic investor and there are some rumors that Russian oil company Lukoil may be interested. "The Russian company has a lot of free means and PKN is a good place to put money into," said ING BSK Asset Management investment adviser Jacek Lichota. The company's statutes do not allow one company to buy shares of PKN Orlen in order to take control of it. There is a possibility that if companies controlled by Lukoil buy a 10% stake, which is the maximum allowed amount, they may try to change the statutory regulations. "If Lukoil bought PKN than it would be able to influence the Polish market and in the future get access to the European Union (EU) markets," said CDM Pekao S.A. analyst Rafal Jankowski. "The value of PKN shares is undervalued. The whole oil market is consolidating and PKN has to react to this situation," said COK BH analyst Monika Cebula. (Parkiet, page 1, 2) M.M.