Government agrees to sell 20% of FSO to AvtoZAZ

Today in Gdańsk, representatives of the investor and the State Treasury will sign an agreement with regard to this deal. "The contract does not mention any fixed amount of investments that we would have to bring into the company. These have to increase the output of FSO," said Tarieł Wasadze, head of AvtoZAZ's supervisory board. He also said that according to the expectations of the EU, FSO is to produce 150,000 cars annually in the future, which is to be achieved by 2007. Economy Minister Jacek Piechota was unable to announce what would be the value of the anticipated investments, and did not say whether potential claims of Daewoo UK or Kamko against FSO have been resolved. He also did not address the issue of purchasing the remaining 80% of shares from the Daewoo receiver. Due to this risk, all investments will be made in a new company, FSO bis. (Parkiet, p. 8) M.M.