BPH and BPK: a single legal entity by end of 2001

Domestic financial leaders Bank Przemyslowo-Handlowy (BPH) and Bank Powszechny Kredytowy (BPK) announced on Friday they plan to complete their long-awaited merger by the end of the year, creating Poland's third largest banking entity in terms of total assets. "Already at the end of the year BPH and PBK should transform themselves into a new legal entity with a new name and indisputably of a Polish character," the banks said in a joint statement. Under the terms of the deal, the merger will take place through an equity swap, whereby BPH will issue shares for BPK shareholders at a swap ratio yet to be set, according to the banks. Combined assets of the two banks equals zl.41.1 billion, while their joint shareholders' funds reaches zl.4.1 billion. German HypoVereinsbank holds 86% of the Krakow-based BPH, while Bank Austria has a 54% stake in Warsaw-based BPK. (Rzeczpospolita, March 17-18, p.B1; Reuters)