German BHV gets approval for majority stake in BPH

The German bank applied for permission in October when it signed a deal with the State Treasury to purchase a 36.7% stake in BPH for $597 million. With the KNB approval the money will be transferred to the Treasury. The sum accounts for 30% of budget income from 1998 privatizations. KNB vice-president Rafal Zagorny said the approval could not be given earlier as Bayerische had to be thoroughly investigated due to rumors of a poor financial status. Bayerische is also obliged to invest at least zl. 700 million in BPH by the end of 2001. Zagorny added that he is aware that the suspended approval caused a $4 million loss for the State Treasury. (Gazeta Wyborcza, page 18)