Janusz Szlanta News

Leading Polish shipyard Gdynia has not given up hope of buying a stake in Finnish shipbuilder Masa-Yards, even though Kvaerner has put off the sale. Gdynia Chief Executive Janusz Szlanta said that Gdynia wanted to boost cooperation with Masa-Yards while waiting for Kvaerner to resume the sell-off. "I have accepted Kvaerner's decision. But at the same time I confirm our interest in taking part in the sale of the Finnish shipyards," Szlanta said. Kvaerner said it is putting off a planned sale of Masa-Yards after failing to find the right buyer. It had been in talks with U.S. cruise groups Carnival Corp and Royal Caribbean, as well as a Finnish bidder. The company said, however, that it maintained its long-term strategic aim of exiting shipbuilding.

Kvaerner ASA has postponed a planned sale of its Masa-Yards Finnish shipbuilding unit in a new setback to its goal of exiting shipbuilding. Kvaerner said it had failed to find a right buyer for Masa-Yards, which specializes in building cruise ships and has an order reserve of $2.6 billion, and would instead concentrate on raising the unit's profitability. "Talks (about a sale of Masa) have not led to a satisfactory agreement," the company said in a statement. "As a consequence, Kvaerner will now concentrate on carrying out the improvement program set in place to obtain satisfactory results." Kvaerner said the decision would not affect its goal of cutting huge debts.

Poland's Gdynia Shipyard is likely to take up 20-25 percent of shares in the Finnish Kvaerner Masa-Yards, Gdynia's chief executive Janusz Szlanta said last week. "Negotiations with other investors are still under way and nothing final has been decided yet. Everything points to the fact that Gdynia will take up a stake of between 20 and 25 percent," Szlanta said. "Four groups of investors will buy a new share issue, addressed only to them. The Gdynia shipyard wants to increase its stake in Masa-Yards in the future, but that will not happen sooner than in a year," Szlanta said. He declined to name the value of the transaction, adding final negotiations would probably end in two months.

The Polish Gdynia shipyard fears Finland's government may scupper its bid to take over two Finnish yards put for sale by the Kvaerner, Gdynia's chief executive said. "On merit, our merger is the best business initiative within the European shipbuilding industry," Janusz Szlanta said. "If the Finnish government does not intervene, we will succeed," he said. Industry sources say Gdynia's bid is the best offer Kvaerner has, but it received a cool reaction from Masa-Yard's management, which has formed a rival consortium. The Polish challenge - the first major attempt by a company from the former East Bloc to expand into the European Union - stirred the Finnish government as well.