PKN Orlen/Rotch offer for Grupa Lotos rejected

At a press conference held yesterday, Privatization Minister Piotr Czyżewski announced the government's decision to cancel the sale of Rafineria Gdańska to a consortium set up by rival PKN Orlen and the Rotch Group, and instead merge the company with three small loss-making regional refineries, to create a new company named Grupa Lotos. Yesterday's decision ends Rafineria Gdańska's six-year privatization process and two years of talks with UK-based Rotch Energy. PKN Orlen announced that it was still interested in an alliance with Grupa Lotos. In related news, the treasury has granted LNM Holdings exclusive rights in negotiations for the Polskie Huty Stali (PHS) steel group; however, the Ministry has also turned to LNM Holdings' rival, US Steel, to extend its offer until the end of August; a clear sign of hesitation on the part of the Treasury. (Parkiet, p. 3, Puls Biznesu, p.4) J.K