Bank Handlowy blocks creation of construction giant

A planned merger that would have created the biggest construction company in Poland will no longer go ahead. The union between construction giants Pia Pi asecki and Mostostal Zabrze has been blocked by the biggest shareholder in t he two companies, Bank Handlowy (BH). CitiGroup, which is the parent company of BH, has changed the bank's development strategy, and as a consequence the two construction companies will be sold separately, and not necessarily to s ector investors. According to unofficial sources quoted by Puls Biznesu, a p otential investor in Pia Piasecki has already come forward. Another reason f or canceling the merger is believed to be the poor economic situation in the construction sector and the bad financial condition of Mostostal Zabrze. (Pu ls Biznesu, p. 5) M.T.