Poland Mulls Oil & Gas Mergers

Poland mulls mergers between its three biggest state-run oil and gas companies - PKN Orlen , Lotos and PGNiG and is analyzing various options, the treasury minister Dawid Jackiewicz said on Monday.

"I have started works on this concept to find out what positive effects one could expect. This is about strengthening our position in these companies in order to prevent attempts of hostile takeovers," Jackiewicz said.

He added that results of such analysis should be ready by the end of the first quarter.

Jackiewicz also said that the state-run KGHM, which Europe's second biggest copper producer, should diversify its operations so that it is less exposed to copper price falls.

He also said that it would be justified for KGHM to get involved in the energy sector.

The minister also said that he wants to check whether KGHM's multi-billion investment in copper mines in Chile was justified.

"We have some doubts on that," Jackiewicz said.

Reporting by Marcin Goclowski