Eureko planning to increase its stake in PZU if it gets government approval

The Cabinet has not yet reached a decision regarding continued privatization of Poland's largest insurance company Powszechny Zaklad Ubezpieczen (PZU). However, it has to decide soon if pan-European insurance company Eureko is to be allowed to buy an additional 20% to 25% stake in PZU as the offer expires at the end of June. Eureko has already bought some of BIG Bank Gdanski's (BIG BG) shares to give it a 30% stake in PZU. If Eureko does not increase its stake in PZU, then it is unlikely to proceed with plans to list PZU on the Warsaw Stock Exchange (WSE). Eureko is also planning to buy BIG BG's remaining 10%-stake in PZU, which would give it more than a 50% stake. If the Cabinet does not sell more shares to Eureko there will likely be a public issue in about 18 month's time. (Prawo i Gospodarka, page 1, 8) M.M.