Poland starts inviting bids for privatisation
Polish Government, in an agreement with the EU that allows substantial state aid in exchange for cuts of overcapacity and closures of outworn operations, in order to prepare the market for competition without public support prior to 2006, is reported to have started inviting bids for the steel company Polsky Huty Stali (PHS). For the privatisation, planned to complete next year, the companies are invited to make their initial offers. Currently, US Steel Kosice and LNM Holdings are the interested parties for the four mills merged under the holding group named PHS, accounting for about 70% steel production of the country. Bidders are expected to give details of their offers for Zloty 1.6billion ($413million) debt and debt-for-equity swap, and their plans for a capital increase to be provided for the mills' technical upgrade. Furthermore the methods to purchase government shares would also be disclosed.