Minister confirms that PKO BP-PZU capital merger is on

State Treasury Minister, Piotr Czyżewski, yesterday confirmed earlier rumors in the press concerning plans for a capital merger between the insurance giant PZU and the largest retail bank PKO BP, both controlled by the T reasury. The Minister cautiously added that for such a decision they would have to have an agreement from Dutch Eureko, which together with Bank Millennium controls a 30% stake in PZU. "We have to take into account all factors. The future of the company has to be discussed with all shareh olders," said Czyżewski. Although the easiest way to go through with the merger is the purchase of the stake from Eureko, the investor is not i nterested in selling out. Eureko is currently in conflict with the gov ernment concerning the purchase of additional shares in PZU. However, according to unofficial news, one possibility being considered would be to invite another foreign bank which would enter into negotiations with the Dutch company. At present the main obstacle to the merger is the fact that the president of PZU, Cezary Stypułkowski officially announced he is against the idea. (Puls Biznesu, p. 7) A.K.