Poland Could Merge Chemicals Makers to Fend Off Suitors

Poland is considering merging two state-controlled chemical makers, Tarnow and Pulawy, Treasury Minister Mikolaj Budzanowski said on Thursday, to fend off bidders and consolidate the sector.

Tarnow, Poland's No.1 chemicals company and the target of a 1.5 billion zloty ($441 million) offer from Russian rival Acron, could make a counterbid for Pulawy, which local synthetic rubber maker Synthos wants to buy.

While Poland has been seeking to raise 15 billion zlotys through asset sales by the end of 2013, it has struggled to hold off Acron and is lukewarm towards the 1.96 billion zloty offer by Synthos, owned by Polish businessman Michal Solowow.

"We want Azoty Tarnow to be the centre of consolidation of the Polish chemicals sector," Budzanowski said, asked whether the Treasury, which oversees state assets and controls over 50% in Pulawy, would respond to the Synthos bid.

"We are considering the (Synthos) bid, but we also have a different option, which assumes the possibility of consolidation of the sector by Tarnow," Budzanowski said.