Bank Ochrony Srodowiska declines to buy deteriorating Bank Czestochowa

Bank Ochrony Srodowiska (BOS) has decided it will not buy Bank Czestochowa (BCz,) despite its strategic investor's approval of the deal. After a due diligence conducted by BOS in BCz, the potential buyer withdrew from the transaction. BCz is also no longer attractive to another investor, BRE Bank. In the failed deal both investors were to have purchased 1 to 1.5 million shares that would have given them 30.5% to 39.6% of votes at BCz general shareholders' meetings. BOS authorities say they were unhappy with the BCz assets' structure, namely a large number of irregular credits. It has also been reported that BCz demanded that the purchase price initially agreed upon would remain unchanged after the books has been examined. In spite of the unsuccessful conclusion of the deal, BCz has officially submitted its emission prospect to the Securities and Stock Exchange Commission (KPWiG). The bank, whose financial condition has been deteriorating, is threatened with intervention by the General Banking Inspector's office (GINB). (Puls Biznesu, p.11)