Bloomberg News

PGE Rebounds From 3-Month Low as Poland Sells Utility Stake

February 24, 2012

(Updates with sale details, analyst comment)

Feb. 24 (Bloomberg) -- PGE SA, Poland’s biggest power utility, rebounded from a three-month low in Warsaw trading after the government sold a stake in the company for 2.52 billion zloty ($809 million) yesterday.

The shares jumped as much as 2 percent to 19.75 zloty and traded 0.8 percent higher at 19.53 zloty at 9:35 a.m. PGE closed 4.5 percent lower yesterday, slumping to the lowest since Nov. 15.

Poland’s Treasury Ministry sold the 7 percent stake in PGE to institutional investors yesterday, according to a statement on its website today. The transaction was the biggest state sale since the 5.4 billion-zloty public offering of coal producer Jastrzebska Spolkazloty Weglowa SA in June.

PGE’s weighting in the WIG20 Index will increase to 9.2 percent from 7.6 percent now, DM PKO BP SA brokerage wrote in a morning note to clients.

--Editors: Linda Shen, Peter Branton

To contact the reporter on this story: Piotr Bujnicki in Warsaw pbujnicki@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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