PKP seeks buyers for WKD and SKM subsidiaries

Polish Sate Railways (PKP) has received initial privatization analyses for two of its subsidiaries, Warsaw's WKD and Tri-City's SKM. The owner is to choose the appropriate means of transformation by early 2003 from the analyses prepared by consulting company Ernst & Young. It has not yet been revealed whether PKP intends to dispose of its 100% stake, or retain some of the shares. It is almost certain, however, that the companies will not be privatized by entering the bourse as, according to Maria Wasiak, head of PKP's privatization office, there will be plenty of potential investors with excellent offers. Helina Sekita, head of WKD, confirms that two years ago, during a privatization poll, 11 offers were submitted. "These were carriers as well as financial investors, who proposed formation of a consortium with carriers. They had ambitious programs, on the basis of which we could expand the company," she said. The privatization of WKD and SKM is intended as a pilot project which would provide experience for future privatization operations, namely PKP Intercity, Regional Carriers, and Cargo. (Puls Biznesu, p. 8) A.K.