PKN Orlen pulls out of German Leuna purchase deal

Poland▓s largest oil company PKN Orlen withdrew yesterday from negotiations to invest in the acquisition of 50% of shares in German Mider refinery located in the town of Leuna. A press leak last week indicated PKN Orlen wanted to invest $1.1 billion in Mider, and the chief of the Polish company▓s investment relations says it is still possible it will return to the deal. Democratic Left Alliance (SLD) MP Maciej Manicki disclosed details about the deal and some MP's and politicians insisted that the Treasury Minister block the transaction and force PKN Orlen to invest in Poland. Analysts stress that investing in Mider, a member of the French-Belgian Total Fina Elf group, could further PKN's plans to participate in the consolidation of the European fuel market, strengthen its position in western Poland, and expand towards eastern Germany and the Czech Republic, where Mider has respectively 230 and 33 fuel stations. (Gazeta Wyborcza, p.18; Rzeczpospolita, p.B4) M.T.