PGNiG privatization could net euro 4 billion for the state

Rzeczpospolita daily received a copy of the strategy to privatize Polish Oil and Gas (PGNiG). If realized, the income from this move is expected to reach euro 4 billion. The main concept is to create a capital group that would enter the stock exchanges in Poland and Europe. The first public offer would begin between 2003 and 2004. Before that, the company's management plans to sell minority stakes in selected distribution companies that belong to the group. During the initial stage of privatization the company wants to sell 1.5 billion new shares and the State Treasury will sell its 200 million shares. These will be sold to domestic and foreign institutional investors, as well as individual investors. PGNiG may consider selling a strategic stake to a foreign gas sector company. (Rzeczpospolita, pp. B1, B4) A.D.