KNUiFE blocks Eureko's attempt to gain control over PZU

The Insurance and Pension Fund Supervisory Commission (KNUiFE) did not give the Eureko Dutch insurance group permission to increase its stake in insurance giant PZU to more than 50% on the basis that it believed that Eureko does not have sufficient funds to do so. "We are surprised. We do have access to financial resources. But one cannot expect us to freeze millions of euro on a bank account and wait patiently for the Polish government to make a decision," said Eureko spokeswoman Lorrie Morgan. The KNUiFE decision is yet another stumbling block for Eureko, which back in 1999 signed a deal together with BIG BG bank to buy 31% of PZU with the intent of eventually gaining a majority stake. However, the government had other plans, as a result of which Eureko filed a law suit against the government which will result in arbitration proceedings, the first session of which is due for September 6. Eureko will probably try to turn KNUiFE's decision around and argue that this is another example of the government using every trick to block Eureko. (Puls Biznesu, p. 5) T.J.