Dutch sortie

Yet another volley has been launched in the long-standing battle between Dutch insurer Eureko and the Polish Treasury over Polish insurance giant PZU. This round it was Eureko's turn to act - last Thursday it filed a suit against the Treasury Ministry regarding the allegedly improper dismissal of its representatives from PZU's management and supervisory boards.

"In October and November 2006, persons recommended by Eureko to the supervisory and management boards of PZU subsidiaries were dismissed and replaced by persons without Eureko recommendations," Eureko commented in a statement.

"The suit demands that the [M]inistry fulfills its obligations under the agreement ... and ensure that persons recommended by Eureko are returned to the supervisory and management boards of PZU subsidiaries."

The row originally stems from Eureko's 1999 purchase of a 30-percent stake in PZU and the Polish government's subsequent refusal to sell a further 21 percent agreed upon during the initial investment.

Courts in Warsaw and Brussels have found in favor of the Dutch firm, but the Treasury has continued to appeal.

In the past Eureko has claimed it is due around zł.6 billion in damages. The firm has, however, intimated its willingness to settle the matter out of court. (Reuters)