Allied Irish Bank to consolidate Polish units by 2003

Allied Irish Bank (AIB), which controls Wielkoposki Bank Kredytowy (WBK) and Bank Zachodni (BZ), wants to increase the number of retail outlets of both banks from 355 to 500 by 2003. AIB plans to invest $100 million in both banks according to AIB director for Central and Eastern Europe Michael Buckley. Buckley also said, "After we have finished standardizing the computer systems in both banks, WBK and BZ will merge."The merger should be in place by mid 2002 and AIB is planning to hold a 60% to 70% stake in the newly created institution. They also want the bank to be listed on the stock exchange with the remainder of shares to be publicly traded and AIB is also considering issuing Global Depositary Receipts (GDR). No layoffs are expected as the bank wants to expand its activities. On the insurance side, WBK will maintain its link with Commercial Union. AIB is also in discussions with Forum, the American banking group and funds administrator, which plans to terminate its contract with BZ. (Rzeczpospolita, June 3-4, page B4) P.S.