UPDATE 1-Polish deputy treasury minister quits to take on bourse job

Fri Jun 6, 2014 11:46am EDT

Related Topics

* Pawel Tamborski to become a new Warsaw bourse CEO

* Bourse seeks fresh impetus as privatisations dry up

* Talks with Vienna bourse have been going for over a year (Adds background and analyst comment)

WARSAW, June 6 (Reuters) - Poland's deputy treasury minister, former investment banker Pawel Tamborski, has stepped down to become the new chief executive of the Warsaw Stock Exchange (WSE), the ministry said on Friday.

The Warsaw stock exchange, whose listed firms have a combined market capitalisation of $277 billion, is the biggest bourse in central and eastern Europe and was No. 2 in Europe after London in terms of the number of initial public offerings in the first three months of this year, according to PwC.

"I'm pleased that a person of such high standing among market participants agreed to take on the challenge of managing the largest stock exchange in this part of Europe," Treasury Minister Wlodzimierz Karpinski said in a statement.

The announcement confirmed a report by Reuters last month that the government was considering appointing Tamborski to run the exchange.

The boss of the Warsaw bourse is chosen at a shareholders meeting, but this is likely to be a formality as the treasury holds a controlling stake in the company.

The outgoing bourse CEO, Adam Maciejewski, was appointed in 2013 for a term which will soon end.

Sources close to the treasury ministry told Reuters last month they wanted to replace him with someone who had a markets background to breathe new life into the exchange.

Poland's privatisation program has generated a steady stream of public offerings on the bourse, attracting new investors. But there are now few state-owned assets left to sell off, leaving the bourse at a crossroads.

A proposed tie-up with the Vienna stock exchange, which also owns smaller exchanges in Prague, Budapest and Ljubljana, could strengthen Warsaw's position against its rivals in Frankfurt and London.

But talks between Warsaw and Vienna have been going on for over a year with no sign of an imminent conclusion. The Warsaw bourse stock price has fallen by almost 8 percent this year, underperforming the broad market.

Tamborski, a former head of investment banking at UniCredit's Polish arm and at Wood & Company, may be the right person to do the job, analysts said.

"He is competent. It is hard to think about any other young person who could take this job," said a Warsaw based financial sector analyst who did not want to be identified because his employer has a relationship with the bourse.

"The biggest challenges now are to define the WSE's (stock exchange's) position in the region and to decide whether it is profits or market development that matter," he said. (Reporting by Marcin Goclowski; Additional reporting by Anna Koper; Editing by Christian Lowe and Mark Potter)

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