Bank Czestochowa moves to increase its base capital through share issue

Bank Czestochowa (BCz) shareholders yesterday gave their approval of a substantial capital increase, an emergency measure taken to mollify investor concerns that the small-sized bank could be on the verge of bankruptcy. As a result of the hike, BCz's capital is to increase to between zl.15 million and zl.70 million. The company's share value hit an all-year low of zl.13.5 yesterday amid smaller investors' fears that majority owners might not vote in favor of the capital increase through an issue of 1.5-7 million shares, for a possible strategic shareholder or other investors. It is said that Bud-Bank is to remain the sole bidder for a BCz takeover, since both BRE Bank and Bank Ochrony Orodowiska are no longer interested in making an offer. Worries about the BCz's financial health were sparked last week when it temporarily closed its outlets following a run on the bank. (Puls Biznesu, p.4; Reuters)