The on-off merger between Polish confectioners Mieszko and Jutrzenka is still on the cards, claim sources inside the two companies.
Analysts however have been doubtful about the chances of the merger coming off. The institutional investors in Jutrzenka are certainly in favour of the merger, but they have to persuade the company president and the employee shareholders who stand behind him and hold 52% of shares,” said CDM Pekao analyst Bogna Sikorska.
Factors probably impeding the merger are the different management set-ups of the two firms, as well as their general plans for the future. Jutrzenka has thus far concentrated entirely on the domestic market, while Mieszko has devoted a large proportion of its resources to exports.