Poland's national airline LOT has asked several investment banks to draft potential initial public offering strategies, hoping to list on the Warsaw bourse by early 2006, a source close to the company said on Friday. The Polish government has a 68 percent stake in LOT. About 25 percent is owned by the receiver of Swissair who took over the failed airline's stake, and LOT employees own about 7 percent. "An IPO could be possible at the end of this year or in early 2006. Right now five banks are analysing the possibilities and should report their opinions within weeks," the source, who asked not to be named, told Reuters. A LOT spokesman declined comment on its privatisation plans.
By law, the government must keep a 51 percent stake in LOT, meaning the potential public offer could be made of the remaining 17 percent as well as the receiver's stake.
LOT, a member of the Lufthansa-led Star Alliance, has sought a bourse listing for years but restructuring schemes and foot-dragging by the government have delayed its plans.
The carrier returned to profit last year after posting a loss of 109 million zlotys ($33.06 million) in 2003.
Within weeks LOT is also expected to pick between Boeing and Airbus jets in a $500-million-plus tender.