PHZ Bumar beats Patria over purchase of leading arms producer

Shares in the Siemianowice Śląskie Military Mechanical Works (WZMS) will be transferred to leading arms producer PHZ Bumar, although Patria of Finland, put in an earlier bid to purchase an 85% stake in WZMS. "The arms company will first be commercialized and then privatized. We cannot sell such a large stake to Patria. We have to bear in mind that there are two large arms groups in Poland: one around PHZ Bumar and the other centered around the Industrial Development Agency," announced Deputy Defense Minister Janusz Zemke. He added that 15% of shares will be handed over to the company's employees, 5% will be transferred to the reprivatization fund, while the remaining shares will be divided between PHZ Bumar, and possibly a foreign investor. Jorma Wiitakorpi, the president of Patria announced that it is now too early to comment on the case, adding that after commercialization Patria will still be interested in taking over a majority stake in the Siemianowice-based company. (Puls Biznesu, p. 7) A.K.