More details in Cabinet's disapproval of PKO BP privatization program

Privatization of PKO BP, the nation's largest bank, may be be delayed due to the Cabinet Economic Committee's (KERM) disapproval of the project submitted by the Treasury Ministry to float the bank on the Warsaw Stock Exchange (WSE). Previously, the Treasury Ministry, which is the sole owner of PKO BP, intended to sell a slightly less than 35% stake in the bank. It could not sell more, as the bank's employees and pensioners have the right to keep a 15% stake, while the remaining stake, which is 50% plus one share, must stay in the hands of the Treasury, according to last year's bill on the privatization of PKO, PZU and Bank Gospodarki Zywnosciowej. In the project submitted Thursday, the Treasury Ministry reportedly was to keep a 51% stake, whereas 34% was to be floated on the bourse. According to Gazeta Wyborcza, KERM members were disappointed that the plan did not not envisage the sale of a PKO BP stake to a strategic investor, which would guarantee the state budget more revenue from the bank's privatization than a public offer for minor shareholders. (Gazeta Wyborcza, Jun. 9-10, p. 31 ) A.Z.