KPWiG decision paves way for Hamester to launch bid for control of Wawel

Two major shareholders of leading confectioner Wawel are gearing up to significantly increase their holdings. Last week the Securities and Stock Exchange Commission (KPWiG) gave German company Gustav Hamester permission to increase its 22.09% of shareholder votes to above 50%. At the same time Eugeniusz Malek, who owns 21.62% of votes, has been given the go-ahead to boost his holding to more than 33%. However, a battle between the two for control of Wawel seems unlikely, in view of the privileges Malek enjoys as a co-founder of the company. The most likely scenario envisions Hamester buying up the outstanding ordinary stock, while Malek would call a bid for the preferred employee stock, which would lose its additional voting strength if bought by Hamester. Once the two companies together have established a dominant position in Wawel, Hamester would probably buy Malek's shares, paying him a premium for control of the company. (Gazeta Wyborcza, Nov. 24-25, p. 30) T.J.