PKN Orlen shuns PGNiG but keen on buying Grupa Lotos

Its primary concern was that PKN Orlen might take part in the privatization of Polish Oil and Gas (PGNiG) and Grupa Lotos. "All depends on the good will on both sides," said Igor Chalupec, PKN Orlen president. The idea to take part in the privatization of PGNiG was very surprising as still in October 2004, Chalupec declared that investing in that company was pointless as it would strip PKN Orlen of capital needed to develop its primary business. "We will not comment on PKN Orlen's plans," said Marek Kossowski, PGNiG president. PKN Orlen's second target is Grupa Lotos. Chalupec said, "We are not interested in small purchases on the bourse. We are interested in a larger stake." The strategy also envisages finalizing the take over of Unipetrol, a Czech chemical concern, which has not yet received the consent of the European Commission. Over two years ago PKN Orlen bought 500 BP petrol stations in Germany, however the investment turned out not to be as profitable as previously expected. Now it plans further acquisitions. "We have to buy a further 200 petrol stations and increase our presence on the northern German market from 7% to 10%. Should this plan turn out to be impossible, we will consider selling Orlen Deutschland," said Chalupec. Orlen's target in Poland is to secure a 30% share of the market against the present 28.6%. (Puls Biznesu, p. 7) D.W.