Citibank may dispose of its stake in Dom pension-fund

Citibank may sell its 50%-stake in pension fund PTE Dom to another pension-fund company, TUiR Warta. It has conceded to sell the shares at a price substantially lower than the market price, in return for a guarantee it would have a say in the management of the fund in the event of a third shareholder acquiring a stake. Warta itself is a target for acquisition by some major foreign institutions wishing to enter the Polish pension-fund market. The possible sale of Dom may have been prompted by the fact that Citibank also owns shares in another pension fund, PKO/Handlowy PTE, but is forbidden by law to own more than one pension fund. Earlier plans to merge the funds were abandoned and Citibank is thought to have decided to stick with PKO/Handlowy PTE, which is a larger fund than Dom. However, PKO BP bank also has a share in PKO/Handlowy PTE, leading to speculation Citibank may try to acquire PKO PB's stake. (Rzeczpospolita, page B5) S.M.