Pension funds gaining momentum on the capital market

Pension funds are playing increasingly important roles as shareholders in publicly traded companies. Groups of pension-fund investors are teaming up and combining their stakes, which individually often do not exceed the 10% benchmark. One of the most notable examples is the recent defeat of a proposal by Michelin, a major stake holder in Stomil Olsztyn by pension funds Dom and PZU Zlota Jesien. Generally, pension funds represent the interests of weaker minority investors. They are noticeably influencing investment schemes, share issues, mergers and acquisitions, and ownership structure. "A pension fund uses its rights in the interests of future pensioners. To limit their presence as investors will lead to lower investment profitability and the overall financial appeal of companies listed on the bourse," said the future president of PTE Nationale Nederlanden pension fund Michal Szczurek. (Puls Biznesu, page 1,5) P.S. Sejm laying tracks for privatization of State Railways Next week the Sejm will discuss for the second time plans for the commercialization, reconstruction and privatization of Polish State Railways (PKP). Solidarity Election Action (AWS) and Freedom Union (UW) are both in favor of creating a new PKP act. The new act will likely encompass the transformation of PKP from a state-owned company into a joint-stock company, with the State Treasury as one of the shareholders. As PKP S.A, the company will then create a number of partnerships, each specializing in either passenger, freight, regional and railway-track management. Revenue is also expected to be raised from the issue of zl.9 billion worth of treasury bonds. PKP's workforce is also to be reduced by 43,000. (Puls Biznesu, page 3) A.D.