Vistula and Wólczanka reveal details, costs of merger

"These are one-off costs," said Rafal Bauer, president of the merged entity. The transaction will be carried out in August and September and it will bring about savings of zl.3.1 million in 2006 and zl.11.8 million in 2007. The largest share in the second figure will constitute benefits stemming from boosting sales efficiency. Final estimations of the profits resulting from the merger will be announced following the execution of the deal. The new entity will also benefit from a larger sales network, which currently consists of 164 outlets and will increase to 200 outlets by year's end. The company will also expand in foreign markets and via acquisitions of mass segment and luxury retailers. To finance its ambitious plans it will issue new shares worth a few times more than the zl.20 million it could obtain from loans. (Puls Biznesu, pp. 1, 13) M.M.