Unimil seeks safe haven for its spare cash

German condom producer Condomi, which controls domestic Unimil, is in deep financial difficulties and it is currently looking for an investor. "I neither confirm nor deny it," said Grzegorz Winogradski, Unimil president. The Polish firm would like to see its share capital increased in order to be able to acquire Condomi, but the deal could be risky as the value of Unimil's stake in Condomi is worth only zł.500,000 against the original purchase price of zł.4 million. "Our acquisition of these shares is a long-term investment. These were even worth EUR 30 per share and we hope they will soon go up again. Unimil has financial over-liquidity and we would like to invest the capital as safely as possible," said Winogradski in February 2003. The company has zł.4 million of free capital, which would easily buy an 11% stake in Condomi. (Parkiet, p. 1) M.M.