Arka and Winterthur first two pension funds to merge

Two pension funds - Arka Invesco and Winterthur will merge and it will mark the first, real merger in this market in Poland which is not connected with any capital changes of the shareholders of those funds. The management of both firms are trying to increase their market share. They were separately conducting due diligence of Norwich Union, which will be sold soon. However after the due diligence the funds decided against making a purchase. In the first stage of the merger Winterthur will own the major stake. The firms then plan to take over a mid-size company rumored to be Kredyt Bank pension fund and make the number of the shares held by each equal. Both funds also have minority shareholders and their significance will decrease. Managers from neither company wanted to comment about the information. (Puls Biznesu, page 3) M.M.