KGHM dividend raised thanks to Treasury support

Shareholders in copper mining company KGHM Polska Miedz voted yesterday to increase their dividend from the zl.0.75 per share recommended by the company's management, to zl.1.00. The motion was passed thanks to the support of the Treasury, which now stands to gain an additional zl.22 million from its 44% stake in the company. During the general shareholders meeting, the Treasury also managed to block a proposal for a 75% increase in the company's capital. Treasury representatives, however, failed to present any economic arguments backing the decision, which fuelled speculation that the only reason was concerns about its own position in the company. Analysts say the Treasury, with its budget problems, could not afford to buy any additional shares in KGHM, and would automatically lose its controlling influence in the event of any capital increment. (Rzeczpospolita, p. B1, Gazeta Wyborcza, p. 27) M.K.