Despite a tight schedule PZU almost ready for sale

The Securities and Exchange Commission (KPWiG) said on Friday it expects to clear PZU for public trade in October, paving the way for the zl.5 billion initial public offering (IPO) of the insurance giant in December. The Treasury plans to float a 50% stake in Powszechny Zaklad Ubezpieczen SA (PZU), which controls about 60 % of the domestic insurance market. Both KPWiG head Jacek Socha, as well as PZU president Zygmunt Kostkiewicz are adamant that the IPO can take place by the end of the year, despite a tight schedule. Analysts have said recent scandals surrounding PZU, such as the July arrest of a former top official Grzegorz Wieczerzak on suspicion of fraud, as well as the poor market conditions, may discourage investors from bidding for the shares. Under an agreement signed earlier this year, Dutch-based Eureko insurance consortium will be able to increase its stake to 51% as part of the public offer. Eureko, together with its partner BIG Bank, currently holds 30% of PZU. Kostkiewicz also confirmed that the Polish insurer, along with Eureko, has submitted a non-binding bid for Slovakia's largest insurance company Slovenska Poistovna. (Reuters) T.J.