Citibank bid for Bank Handlowy can decrease solvency
The second public tender call of Citibank to buy Bank Handlowy shares for
zl. 70 will be attractive for shareholders, but can cause serious troubles
for the Polish bank. Citibank can acquire a maximum of 66% of Bank Handlowy
shares and has probably bought such amount during the first call. There is
little chance the Bank Supervisory Commission (KNB) will allow Citibank to
hold more shares of the Polish bank. It is probable that shares acquired by
Citibank will be held in order to receive dividends. The problem is that
will decrease the solvency of Bank Handlowy on the Warsaw Stock Exchange
(WSE). Citibank Overseas Investment Corporation, the parent company of
Citibank, plans to merge its bank and Bank Handlowy. It also plans for the
new partnership to remain publically traded on the WSE. (Puls Biznesu, page
6) M.M.
