Court finds Michelin group guilty of price manipulation in Stomil tussle

The Supreme Administrative Court (NSA) yesterday found France's Michelin group, the major shareholder in Stomil Olsztyn, guilty of manipulating prices of the domestic tire producer's goods. The court maintained that the group had bought Stomil-produced tires at a price 20% lower than it later asked from its independent wholesalers in Western Europe. The court said that capital ties between Michelin and Stomil made it possible for the former to buy products at lower prices than it would have otherwise been able if the two were separate entities. This resulted in Stomil recording lower-than-expected profits. Minority shareholders at Stomil Olsztyn accuse Michelin of repatriating profits that in fact belonged to the Polish company and demand redress from the majority owner. As the court's ruling concerns activities that took place in 1997 alone, the minority owners are now demanding that an independent audit be undertaken to determine whether Michelin has been conducting such practices more recently. (Rzeczpospolita, p. B4; Puls Biznesu, p.10) J.K.