PGNiG to consider privatization through share issue

Polish Oil and Gas (PGNiG) could be privatized through a public offering, as support dwindles for a plan to spin off units from the energy giant. The speculation comes ahead of a meeting of the company's supervisory board scheduled for February 26, which is to discuss the strategy for PGNiG's restructuring and privatization. Unofficial sources quoted by Rzeczpospolita suggest the PGNiG management is already planning to issue a number of shares, although the exact amount is unknown. Andrzej Arendarski, a member of the PGNiG board, says the company should be privatized as a whole, since a major influx of private capital would be of enormous benefit. Under a government strategy published at the end of January a number of gas distribution and exploration companies were to be spun off from PGNiG. But now neither the Economy Ministry nor the Treasury is willing to admit to authorship of the plan. "Such an idea makes no sense. It would be damaging for the Polish economy and was placed in the strategy documents without any discussion with the two ministries," Arendarski said. (Rzeczpospolita, p. B4) A.Z.