State Treasury has no immediate plans to sack the chief executive of PKN Orlen Igor Chalupec, Poland's treasury ministry said on Friday. Media speculated that Chalupec could be removed as early as this month, which brought the share 1.5% down on Friday. Later that day State Treasury said that it has no plans to sack Mr. Chalupec at the next meeting of the supervisory board.
Our view: We think that, once committed, State Treasury will not abandon its plans to dismiss Mr.Chalupec and the current announcement could be just a postponement. However, we would favour the decision to let PKN‘s current CEO to finish the Mazeikiu deal. Since the stock have already positively reacted to the news on Friday we expect no market reaction today.