Polimex-Cekop merger with Mostostal Siedlce to go ahead

The merger of two construction companies, Polimex-Cekop and its subsidiary, stock-listed Mostostal Siedlce, is to become a reality by the end of the year. The two companies have chosen advisory company BDO Polska to carry out the process. "Financial due diligence and evaluation of Mostostal has been concluded while the process into Polimex-Cekop is nearing completion. We will have the final plan of the merger between July and August," said Mostostal Siedlce president Aleksander Jonek. The company will operate under one name, most probably Mostostal-Polimex. The new company will have an annual turnover exceeding zł. 1 billion and might issue new shares following the merger's conclusion. "We will no longer keep the holding structure in the long run and might incorporate other subsidiaries in 2004," said Polimex-Cekop president Konrad Jaskóła. One analysts said that, "The idea sounds good, but an important issue is whether the profitable Mostostal will not lose on merging with its loss-making parent company." (Puls Biznesu, pp. 1, 7) M.M.