Orlen now ready to pay USD 2.5 billion for Mozejki

The company is ready to pay approximately USD 2.5 billion for 94% of the refinery's shares. Orlen also declared it would invest an additional USD 1 billion within five years in the plant. Analysts believe that Orlen will easily raise bank loans to finance the transaction. The company will also probably try to convince its shareholders to allocate most of its 2005 zl.2.54 billion profit in the project. However, analysts have different opinions on whether the investment in Lithuania will be profitable for Orlen since the expected returns are not certain and the transaction will certainly increase the company's debts. Pawel Szymanski who is responsible for finance in Orlen admitted that the company is considering the sale of multiannual bonds in order to repay some of the bank loans. (Rzeczpospolita, pp. A1, B1) E.B.