Leading coal companies could be set to merge

Rumors about the merger of coal companies Kompania Węglowa (KW) with 23 mines, and Katowicki Holding Węglowy (KHW) with 10 pits, are getting louder. According to sources, last week Democratic Left Alliance (SLD) deputies discussed the issue with the Prime Minister. "This is a very good idea, as this would eliminate competition among state companies and help standardize the market," said Jerzy Markowski, a former deputy economy minister, who is presently an SLD senator. Furthermore, the government has decided that later in September, KW would receive a capital injection of zł. 800 million. "Merging a good company with a bad one is useless," claims Wiesław Blaschke from the Polish Academy of Science (PAN). In the first half of 2003, KHW had a net profit of over zł. 20 million, while KW's losses exceeded zł. 750 million. In related news, the government wants to transfer the shares of coal distributor Węglozbyt into KW. (Puls Biznesu, pp. 1, 8) M.M.