Treasury opts to merge Wars with PKP Intercity

51% of Wars' stock will be taken over by PKP Intercity in exchange for its zł.11 million debt. It has not been revealed when the transaction would be finalized, as it has yet to be consented to by both Wars' and PKP Intercity's shareholders. "The merger gives us the opportunity to improve the level of our service. We are currently preparing the reorganization and investment program," said Andrzej Żurkowski, PKP Intercity's president. Wars and Intercity need each other, as Wars would not be able to operate without its rail partner and Intercity without the catering and maintenance of sleeping cars provided by Wars. Moreover, the Treasury Ministry no longer has to find new owners for these companies. PKP announced it will privatize its subsidiary, Intercity, in a few years time. Wars' 2003 profit was zł.700,000 while Intercity lost zł.31.6 million. (Puls Biznesu, p. 6) D.W.