Government seeks to avoid mistakes in Kompania Weglowa capitalization

The government will give the newly created Kompania Weglowa coal group zl. 533 million in cash by April, Economy Minister Jerzy Hausner told a press conference on Friday, allaying fears that state shares in listed firms would be dumped on the market soon. He said transfers of state-owned shares were the most likely option for a planned increase in Kompania Weglowa's capital, prompting worries about share oversupply after a similar deal last year. The Minister said transfers in the first quarter would include cash only. "In 2003-2004 Kompania Weglowa will receive a total of zl. 3.5 billion, of which zl. 1.3 billion will be in cash and the rest in saleable assets." Last spring the government gave two state-owned banks a combined 4.7% stake in TPSA, which prompted periodic drops in its share price on fears that the shares would be dumped on the market. (Reuters) A.Z.