Eureko finally claims victory in battle for control of PZU

Pan-European insurance group Eureko has claimed victory in its two-year struggle for control of Eastern Europe's top insurer, PZU. Yesterday the group signed a zl.2.77 billion deal with Poland's outgoing government, upping its stake in the insurance giant to 41%. In addition, Eureko clinched a deal with the PZU trade unions that secured it the 15% stake controlled by the company's workers. This took its total spending to zl.4.3 billion. Another 10% of the company is already controlled by Eureko's partner BIG Bank Gdanski (BIG BG), which means that Eureko now has effective control over two thirds of PZU. Treasury Minister Aldona Kamela-Sowinska explained, "The price we have negotiated includes a special fee for the takeover of the company." The deal is yet to be approved by the Interior Ministry. However, Kamela-Sowinska is confident this will be a formality. "As for the approval, I don't think there should be any difficulties. I expect the money from the transaction to credit the budget within two months," she said. She stressed that she would go ahead with the floatation of the Treasury's remaining 34% of PZU. (Gazeta Wyborcza, p. 23; Reuters) J.K.