Finance Ministry facing arbitration over PZU shares

The Ministry of Finance faces an international arbitration trial in London on Tuesday. The Dutch holding company Eureko, which owns almost 21% of PZU's stock, is accusing the Polish government of failing to follow a treaty stating that foreign investors should be treated well in this country. Three international judges: Yves Fortier, Stephen Schwebel and Jerzy Rajski will issue their ruling by the end of the year. "We are ready to reach arbitration but we will not reveal details of our strategy," said Eureko's spokesperson Lorrie Morgan. The Finance Ministry, which currently owns 55% of the insurance giant's shares and is in control of its operations, is confident that the verdict will be in its favor. "This is a political case and both sides are right to a certain extent. I can only assure you that the Ministry has very strong arguments. It has a chance to win and is going to make use of that," said a lawyer close to the Ministry's representatives. The game is worth playing because the stake is 21% of PZU's shares and the winner will enjoy total control over PZU. Moreover, should the Dutch side win, Eureko may plead for compensation of up to EUR 1 billion. (Puls Biznesu, pp. 1, 3) D.W.