Belgian Fortis abandons Warta talks after due diligence

Belgian banking-insurance group Fortis withdrew from talks with Kulczyk Holding on acquiring a stake in Poland's second-largest insurer Warta. Fortis made the decision after conducting due diligence of Warta. This decision leaves three contenders for the stake: AIG, AXA and Allianz. However, according to unofficial information both AXA and Allianz are insisting on acquiring a majority stake in Warta. Meanwhile, Kulczyk Holding, which together with related entities owns 71.9% of Warta, is said to be willing to sell no more than 25%. There are also major differences regarding the price. Kulczyk is demanding zl. 180 per share, while the potential investors are offering zl. 110 - zl. 120. Warta was listed on the Warsaw Stock Exchange (WSE) at zl. 167 yesterday, but according to analysts the company is overpriced. (Puls Biznesu, page 4) T.J.