Published: 3/27/1998

On 18 February, the Polish Ministry of Finance officially announced the tender for the advising company which will be responsible for the privatisation of Polish Airlines LOT. The offers had to be submitted by 17 March. It is expected that the winning company will be named in mid-April. The Polish Government does not have its own strategy for LOT's future development, which is being confirmed even by sources inside LOT, and this part of the tender offer will be one of the most important during its validation. However, there is speculation that the Government in Warsaw will take a decision to change the law and allow more shares to outside investors than it originally planned. According to the original plan, 51% of shares were to stay with the National Treasury, but now it might be changed into a 'golden share' type concept. The winner will be responsible for preparing a strategy for LOT, calculating the company's value, and issuing of all privatisation documents. It has not been decided how many shares will go to the strategic investor and how many will be released to the market. 10% of shares will be sold to LOT's employees, under the Polish Privatisation Law. (MM)(AL398.8)

Article ID: 126