Mr. Solorz-—ak announced that he is not going to sell a 40% stake in power generating plant PAK. He added that he would demand a compensation of PLN 1.0-2.3 bn, if the State Treasury withdraws from the privatisation agreement signed in 1999. Meanwhile, more companies expressed interest in acquiring stake in PAK, including RWE, Vattenfall and CEZ.
Our view: We doubt that KGHM would conclude any deal regarding PAK this year, as it looks like State Treasury is on the brink of lengthy legal dispute with Mr. Solorz-—ak and Elektrim.