Poland's PKN Orlen may buy into chemical company Tarnow at IPO in June

WARSAW (Thomson Financial) - Poland's largest oil refiner PKN Orlen 'will consider' buying a stake in chemicals producer Zaklady Azotowe Tarnow at the company's initial public offering planned for June, PKN management board member was quoted as saying.

Dariusz Formela told newspaper Gazeta Prawna in an interview that PKN's chemical unit Anwil also wants to take part in the sale of its state-owned peer Zaklady Azotowe Kedzierzyn, which the government plans to float on the Warsaw stocks exchange next year.

'Anwil has a great opportunity to build a chemical group,' Formela said. 'In our opinion there are large economies of scale to be made in terms of products and investments between Anwil, Tarnow and Kedzierzyn.'

PKN has repeatedly put off plans to float Anwil, in which it holds a 84 pct stake. The company is Poland's biggest maker of PVC products, used in construction, and one of the country's leading producers of nitrogen fertilizers.
Source: By Piotr Skolimowski, forbes.com