Treasury removes KGHM board chairman Zdrzalka

Poland's State Treasury replaced all five of its representatives on the nine-member supervisory board of KGHM Polska Miedz, including the chairman of the board, Jerzy Zdrzalka, at a shareholders meeting on Friday. According to KGHM spokesman Jerzy Pietraszek, the firm's shareholders also approved a change of the sixth board member, who represents Global Depository Receipts (GDR) owners. The Treasury, which owns 49.55% of the copper and silver group and will soon transfer 5.25% to the state savings behemoth PKO BP to boost the bank's capital, in effect controls the miner because of its largely fragmented ownership structure. Gazeta Wyborcza reports that the dismissal of the board chairman comes as a result of Zdrzalka's refusal as chief executive of state majority-owned PZU to follow Treasury Minister Andrzej Chronowski's orders to appoint treasury officials to key posts at the insurer giant. Wojciech Kwiatkowski, current deputy chair of PKO BP, is seen as Zdrzalka's most likely replacement. The state plans to sell another stake of up to 10% in KGHM early next year. (Gazeta Wyborcza, Dec. 9-10, p.27; Reuters)