Bank Slaski takes controlling stake in WBR

   Bank Slaski (BSK) took a controlling stake last week in struggling domestic bank Wielkopolski Bank Rolniczy (WBR), following the deal's approval by the Banking Supervisory Commission (KNB).

   BSK said it plans to absorb all of WBR's assets and liabilities by the end of this year.

   Talks between WBR and its main shareholders, Bacoma Bis and Lubelska Korporacja Finansowa, on a E6 million share issue that would allow the bank to finance its zl. 20 million ($4.8 million) debt fell through last week, a WBR source told the Business Journal.

   Wieslaw Glowacki, head of WBR's management commission, said in July the bank needed about E6 million to be able "to realize our improvement program safely." At that time he said that any lack of agreement between WBK and shareholders would require the bank to find new partners to undertake the share issue.

   However, Slaski refused to comment on newspaper reports suggesting that French-Austrian bank Kommunalkredit and Italy's Bipop Carire are also interested in WBR.

   Lubelska Korporacja Finansowa holds 29% of WBR's shares and 25% of voting rights on the bank's supervisory board. Bakoma Bis holds 23% and 15% respectively. WBR recorded a net loss of zl. 18 million ($4.3 million) last year.