Treasury seeks allies against PKN Orlen's Modrzejewski

The State Treasury said yesterday it was building a camp of investors to help it reshuffle the supervisory board of leading oil group PKN Orlen, with a view subsequently to replacing chief executive Andrzej Modrzejewski. PKN Orlen, Central Europe's largest downstream oil group, has been in the spotlight in recent weeks as speculation mounts that groups of investors are amassing shares to strengthen their positions at a shareholders meeting on February 21. Treasury Minister Wieslaw Kaczmarek, who called the meeting to pick new members of the supervisory board, has said he wants to fire Modrzejewski, accusing him of incompetence. "The Treasury is holding talks with various entities that could back the ministry's motion to change the supervisory board," Treasury spokesperson Beata Jarosz told Reuters. Jarosz would not reveal the identity of potential partners or whether allied investors are buying up shares on the market. PKN Orlen declined to comment. According to media reports two State-controlled companies are among the Treasury's allies, namely insurance group PZU and copper miner KGHM, along with BRE Bank. (Reuters)