Kuta from FNM said that Unipetrol´s sale price could rise thank to strong 2004 results

Pavel Kuta, vice-president of the National Property Fund, said that Unipetrol’s strong 2004 preliminary results might lead to a higher sale price. According to the sale contract the final price for the state’s 63% stake can change within the range of -25% to +15% depending on Unipetrol’s total equity after a final audit. For the price to rise by 15% the company’s equity has to be more than 5% higher than its level at the end of 2003. The transaction with PKN has not been settled yet due to pending EC antitrust approval. Kuta also said that PKN officials would meet Czech government representatives next week and added that the privatization must be completed by June 30 when the sale agreement expires. It is not currently known if PKN submitted all the requested documentation to receive EC approval. PKN representatives nevertheless acknowledged Unipetrol’s good performance, but said it is too early to talk about any price adjustments. Please note that Patria has a Restricted recommendation on the stock. Source: CTK