Agrofert will announce on Monday, September 30, its intentions as regards its beleaguered acquisition of Unipetrol. As we informed yesterday, it appears likely that Agrofert will not complete the transaction. Although a new tender sale would be good news for the stock, we keep our hold recommendation since (i) it is far from certain that more credible bidders would participate in a new tender, (ii) the operational performance of the main subsidiaries significantly worsened in 2002, and (iii) some of the subsidiaries were among the hardest hit companies in the summer flood in Europe.
Jiri Soustruznik