Sale of minority stake in LOT likely in Q2 2006

"On Friday the State Treasury Ministry, the receiver of SairGroup and LOT signed a document concerning the common projects which are to result in the company's IPO," said LOT's president Marek Grabarek. He went on to say that a realistic date is around the turn of the first and second quarter of next year. "This will not be privatization as the state will not give up its shares. Moreover, the issue has to be constructed in such a way that the state will remain with its 51% stake," adds Grabarek. Therefore, the issue will consist of 25.1% of shares which belong to the receiver and a new issue. Binding offers for advisory services in the IPO process were submitted by JP Morgan and ING. Most probably the first will win the tender and sign the contract within the next week. (Puls Biznesu, p. 7) A.K.