Allied Irish Bank purchases majority stake in Zachodni

The deal to sell the 22.4 million shares of BZ at zl. 102 each was signed yesterday by Treasury Minister Emil Wasacz. "It is the highest price ever paid by a foreign investor for a large Polish bank," said Hanna Kedziora, an analyst for BRE Brokers. AIB plans to enlarge BZ capital, currently at zl. 280 million, by another zl. 250 million within seven months. Over the next few years AIB will invest zl. 600 million in the bank. The Irish agreed to maintain the identity of Zachodni, keep its headquarters in Wroclaw and not to lay off massive amounts of employees. AIB board representative Gary Kennedy declared yesterday that it will not merge the two domestic banks BZ and WBK, however he said they will co-operate. (Gazeta Wyborcza, page 25).