Norwegian wealth fund in talks with Orlen over Polska Press takeover

PiS has said that foreign media companies have too much influence in Poland and distort public debate. The fund, which rarely comments on its dialogue with individual companies, said that ensuring respect for human rights was essential for good business practice and risk management at the 9,100 companies in which it invests worldwide.

Norway's $1.4 trillion sovereign wealth fund, the world's largest, is talking with state-run Polish refiner PKN Orlen about its takeover of newspaper publisher Polska Press, the fund said on Tuesday.

Critics say the takeover of Polska Press from a German media group is part of a drive by Poland's ruling Law and Justice (PiS) to increase control over the media and curb free speech. PiS has said that foreign media companies have too much influence in Poland and distort public debate.

The fund, which rarely comments on its dialogue with individual companies, said that ensuring respect for human rights was essential for good business practice and risk management at the 9,100 companies in which it invests worldwide. "We expect all companies to respect human rights, including freedom of speech ... we have communicated our expectations to ORLEN SA in our company dialogue," a fund spokesperson told Reuters.

"We have also shared information about the case with the Council on Ethics," the spokesperson added, referring to the fund's ethical watchdog, which examines whether the companies in which the fund invests comply with the fund's ethical mandate set out by parliament. In the event of any breach, the Council makes recommendations to the central bank, which manages the fund, to divest.

The Council on Ethics was not immediately available for comment. The fund owned a 0.75% stake worth nearly $50 million at the end of 2020, fund data shows.

PKN Orlen says the deal is a simple business transaction and that it has been done in a legally binding way. In April, the Court of Competition and Consumer Protection suspended the Polish antitrust regulator's approval, following an appeal by Human Rights Ombudsman Adam Bodnar, a vocal government critic. (Editing by Barbara Lewis)