LOT announces its mid-term plans and denies speculation

During the annual meeting of the International Air Transport Association (IATA), Polish Airlines (LOT) president Marek Grabarek announced that his carrier is planning an IPO in Q1 2006 and simultaneously denied rumors of any potential capital engagement of Germany's Lufthansa into the airline. "The discussion only relates to the floatation of our shares on the bourse," announced Grabarek. The foreign media recently widely speculated that Lufthansa, with EUR 3.8 billion of its budget designated for acquisitions was planing to take over LOT. Currently 68% of LOT's shares are controlled by the state, while the remaining shares remain in the hands of employees and the receiver of bankrupt Swissair. The State Treasury announced that the IPO will only encompass newly issued shares, with the controlling stake remaining in the hands of the State Treasury. Although no detailed sum to be raised was revealed, the funds are to be used for development and to repay liabilities. (Parkiet, p. 5) A.K.