In an interview for HN daily, Unipetrol's CEO Francois Vleugels reiterated plans for changes in Benzina division. Benzina's CAPEX should reach CZK 302m in 2006 and CZK 1.1bn until 2009. More detailed strategy for Benzina will be revealed in October. CEO sees no problems regarding to minorities calling for stopping spin-off of Spolana and Kaucuk subsidiaries. CEO touched also problematic issue of contracts with Deza, which he sees as non-obligatory for Unipetrol, therefore no provisions has been created. However he sees off-court settlement of the dispute as possible, should Unipetrol agree on reasonable conditions for sale of Aliachem and Agrobohemie.
Our view:
We see the news as neutral. Please note that the company is on our watch list.