Kredyt Bank breaks off negotiations on Prosper Bank

Kredyt Bank broke off negotiations with an unknown Italian investor over the sale of a majority stake in the troubled Prosper Bank. Kredyt Bank, which has a 84.8% stake in Prosper, has been negotiating the sale of Prosper shares with an entity from the Milano Group, connected to media magnate Silvio Berlusconi. The two sides could not agree on the terms of the deal. "[Kredyt Bank] did not intend to sell Prosper Bank at all cost. Now it shall remain in our group and its restructuring will continue," said Kredyt Bank's press office. Prosper Bank still has negative equity, which means its incorporation by Kredyt Bank would be very costly. The Kredyt Bank group has a 5.6% share in the assets of the banking sector. Without Prosper Bank this share would drop to 4.2%. (Rzeczpospolita, page B5) T.J.