ABN AMRO caught in compensation claim over PZU

A 30% stake in PZU was sold to a consortium of Eureko and BIG Bank Gdanski for zl.3 billion. ABN AMRO received zl 5.3m as well as a success fee of 14% for its services. Now, however, the Treasury wants its money back and is to seek additional compensation for what it sees as improper conduct by the bank. The key charge is that ABN AMRO failed to disclose conflicts of interest when it bid for the PZU mandate: it had long been a main lender to Achmea, the dominant shareholder in Eureko; its Luxembourg subsidiary was a shareholder in BIG Bank Gdanski at the time of the deal; and it had Marek Belka, then member of BIG's supervisory board, on its payroll as an external adviser. The Treasury also says it could have secured a higher price for PZU had not ABN AMRO recommended exclusive talks with Eureko. (Puls Biznesu, p. 5) R.M.