Under new management

On Friday the firm's supervisory board - controlled by representatives of the Treasury Ministry - met to suspend the management board, appoint temporary replacements and start the process of selecting new members. "This management can't continue, because it's a bad management," said Treasury Minister Andrzej Mikosz. Law and Justice (PiS) blames the management board for carrying out a privatization that it has long opposed. Earlier this week Mikosz renewed calls for the renationalization of PGNiG's transmission assets, which was one of PiS' election promises.

But while nationalization would be unprecedented in Poland's post-communist history, analysts say the broad threat is reflected in the share price and the market will wait for details before reacting further. Chief executive Marek Kossowski had already resigned under pressure. Since the beginning of the month PGNiG's shares lost eight percent as pressure on the board mounted, while the WIG 20 rose five percent. (Reuters)