Treasury Minister favors regional alliance for PKN Orlen

Treasury Minister Aldona Kamela-Sowinska has said she would favor cross-ownership among Central Europe's oil companies. She was commenting on a government change of heart that means a strategic stake in PKN Orlen will now be offered to a foreign partner. The government originally planned to float an 18% stake in PKN Orlen on the stock exchange, but last week the Cabinet Economic Committee (KERM) recommended a change of plan. Sale to a strategic investor now looks the more likely scenario, with two main bidders in contention, OMV of Austria and MOL of Hungary. OMV has greater experience and might offer a better price for PKN Orlen shares. On the other hand a partnership with MOL would be on a more equitable basis. Analysts point out, however, that none of the three Central European companies has its own oil resources, and in view of this it would be best for PKN Orlen to join forces with a global oil giant such as Shell or BP, or possibly Lukoil or Yukos of Russia. (Puls Biznesu, p. 7; Reuters) T.J.