Development must be priority for PKN Orlen buyer

Potential buyers of a stake in top fuels concern PKN Orlen will be required to safeguard the company's petrochemical investment program, the head of the agency charged with privatizing the sector said yesterday. Whoever buys the stake will need to promise to develop domestic chemical firms and counter the country's huge trade gap in petrochemicals, new chief executive of Nafta Polska, Maciej Gierej, has stated. "Selling a large stake in PKN has to result in revenues, but more importantly it must guarantee a satisfactory growth rate for PKN itself, as well as for the companies that are dependent on it," said Gierej. Nafta Polska is currently in exclusive negotiations with MOL of Hungary, whose reported bid of over $500 million for a 17.6% stake represents a premium of around 50% over the current PKN Orlen market price. Gierej said a decision on whether to accept the MOL bid was likely by the end of next week. (Reuters)