Morawiecki: PZU does not negotiate with UniCredit on Pekao takeover

Poland is not conducting any negotiations with Italy's biggest bank UniCredit regarding acquisition of its Polish unit, and any potential deal must be done on market terms, Deputy Prime Minister Mateusz Morawiecki proclaimed. On Tuesday, Reuters, citing two sources, informed that PZU CEO Michał Krupiński is flying to Milan for talks on buying Bank Pekao SA from its owner UniCredit. Morawiecki has said the government would look with interest at a potential sale of Pekao, and PZU CEO said the group would consider taking over both Pekao and Raiffeisen Polbank. Meanwhile, PZU has presented a new strategy, which includes holding its group ROE at 18 percent to 2020, expanding banking assets to PLN 140 billion, increasing revenues to PLN 1 billion and squeezing fixed costs in core domestic insurance operations by PLN 400 million to 2018.