BPH-PBK optimistic about bearing merger costs this year

The chief executive of recently merged BPH-PBK has said the costs of the res tructuring will weigh on the bank throughout the year. Joseph Wancer told re porters the bank, which completed the merger at the end of 2001, would bear most of its tie-up costs this year, a large part of which stem from laying o ff some 30% of its 14,000 workers. "It's going to be a hard year because it is a time of changes and restructuring. We will bear most costs of the merge r, but our financial results should not be bad," Wancer said at a ceremony m arking the joint flotation of the banks. Shares in the combined unit jumped to zl.272.50 yesterday, up by almost 8% compared with BPH's Wednesday close, as domestic pension funds and foreign investors rushed to buy the stock afte r new shares hit the market. Under the terms of the tie-up, BPH more than do ubled its capital through an issue of nearly 14.7 million shares to PBK's ow ners. (Reuters)