BSK takeover of WBR bank slated for late September
By : Leo Broomfield
Bank Slaski (BSK) intends to take full financial control of Wielkopolski Bank Rolniczy (WBR), although an appeal by WBR shareholders may delay the acquisition of the struggling bank until late September at the earliest, an unnamed source at WBR told the Business Journal.
Despite the setback, BSK is continuing with its takeover plans. "We are going ahead with the takeover of WBR's operations and will merge them into our own," said Tatiana Kuwak, BSK spokeswoman. "We can guarantee a solid basis for the bank's development."
BSK took over WBR's management on Aug. 9, following Banking Supervisory Commission (KNB) approval.
Last week, WBR shareholders led by the ex-chief of the bank's supervisory council, Witold Hatek, appealed to the Highest Administrative Court (NSA) against the KNB decision. They said they do not want to see the bank lose its separate identity.
A BSK official said the bank was conducting an inventory of WBR that would be finalized in the early part of this week. No one close to the deal would comment on how much BSK wanted or expected to pay for WBR.
BSK has the right to restructure WBR, but not take over its assets until the NSA reaches its decision.
Alfred Brodzki, an adviser to the BSK president, said if the NSA approves the takeover, BSK would offer WBR clients full access to BSK's services. "WBR had no ATM points, no information system and no banking cards all clients will now have all of these within the BSK structure."
Kuwak said BSK was not strongly represented in the towns of Kalisz or Bydgoszcz in central Poland where WBR is headquartered and intended to develop it in the area.
Talks earlier in August between WBR and its main shareholders, Bacoma Bis and Lubelska Korporacja Finansowa, on a e6 million share issue that would enable it to finance its zl. 20 million ($4.8 million) debts fell through, leaving the door open for BSK to step in.
Lubelska Korporacja Finansowa held 29% of the bank's shares and 25% of voting rights on its supervisory board and Bacoma Bis, 23% and 15% respectively. WBR noted net losses of zl. 18 million ($4.3 million) in 2000.
