Wawel shareholders ask prosecutor to investigate board

Minority shareholders in the confectioner Wawel have filed a motion with the Krakow prosecutor's office against the firm's management who they accuse of making decisions detrimental to the company. The shareholders say in recent weeks the management and in part the supervisory board have made decisions not necessarily helpful to the company with the sole objective of remaining in power. One of the complaints raised was a decision by the board to sell some pre-emptive employee shares in an off-the-floor transaction that made it possible for the president of the supervisory board Eugeniusz Malek to take control of 25% of the company. Additionally, WIK, a company affiliated to Malek, also managed to acquire 27% of voting rights in Wawel. The two now control substantial stakes in the company diminishing minority shareholders influence on the management of the firm. The board is also accused of using loans to buy shares instead of using the money to finance the company's overhead costs. Wawel is seeking a strategic investor to pay for the planned zl. 100 million plant near Krakow, but it is not clear how the current row will affect investor confidence in the firm. (Puls Biznesu, page 4)