Cabinet blocks Eureko taking over PZU at too low a price

The Cabinet has not granted permission for pan-European insurer Eureko to acquire a controlling stake in Poland's largest insurer Powszechny Zaklad Ubezpieczen S.A. (PZU). Instead, PZU shares will most likely be floated on the Warsaw Stock Exchangev (WSE). Problems began two months ago when Treasury Minister Emil Wasacz unexpectedly announced he would sell 20% to 25% of PZU's shares to Eureko without calling a tender. Wasacz had received support for the proposed sale from the Cabinet Economic Committee (KERM). However, the Cabinet had the final say. Sejm deputies were against the sale and asked for the privatization of PZU to stop. On top of this controversy, it later emerged Eureko was to pay an extremely low price for the shares. (Gazeta Wyborcza, page 16) S.M.