Polimex-Mostostal SA (PXM), Poland’s second-largest construction company, rallied to a four-month high after moving closer to securing the biggest contract from the domestic power industry in at least two decades.
A group including Polimex hasn’t been able to sign the 9.4 billion-zloty ($2.7 billion) deal it won to build a 1,800- megawatt generating unit for utility PGE SA as Alstom SA of France appealed the decision. The Polish Appeal Chamber will either annul the case brought by Alstom or rule against the appeal tomorrow, Malgorzata Streciwilk, a spokeswoman for the chamber, said yesterday.
Polimex surged as much as 7.8 percent to 1.8 zloty today, the highest intraday level since Sept. 2, and traded at 1.77 zloty as of 12:40 p.m. in Warsaw, extending its advance since winning the deal on Nov. 17 to 38 percent.
“Expectations are that long-awaited big contracts in the power industry will eventually start materializing in Poland,” Andrzej Kasperek, a Warsaw-based analyst at UniCredit SpA, said by phone today. “The comments from the Chamber look to have helped spark a further rally on Polimex.”
Alstom (ALO) is “surprised” at the Chamber’s decision and is considering taking further steps, Dorota Januszkiewicz, the company’s spokeswoman in Poland, said in an e-mailed response to questions from Bloomberg News yesterday. Lukasz Witkowski, PGE’s spokesman, declined to comment before the ruling is announced.
PGE’s contract to expand its power plant in southern Opole is set to be the biggest in the power industry since the 1989 fall of communism. Investments in power generation, road- building, mining and infrastructure may total 500 billion zloty in Poland over the next 10 years, according to estimates by consulting company McKinsey & Co. in September.
To contact the reporter on this story: Pawel Kozlowski in Warsaw firstname.lastname@example.org
To contact the editor responsible for this story: Gavin Serkin at email@example.com