PKN Orlen hints at leading Central Europe consolidation

Poland's largest oil distributor Polski Koncern Naftowy (PKN) Orlen is about to embark on a new conquest, leading the consolidation of the Central European liquid fuels market. According to PKN officials the company has investment plans concerning Hungarian MOL, Austrian OMV and Slovakian Slovnaft. PKN chairman Andrzej Modrzejewski has confirmed it was possible the consolidation could be carried out through swaps of minority stakes among the firms involved. Moreover, PKN wants to participate in the privatization of Rafineria Gdanska, the second biggest refinery on the domestic market. Modrzejewski says the company is interested in an equity tie with Rafineria Gdanska rather than in incorporating it. "I have sent a letter to the Prime Minister in which I requested that PKN not be excluded from the privatization of Rafineria Gdanska," said Modrzejewski. (Prawo i Gospodarka, page 1,2, Rzeczpospolita, page B1, Reuters)