Nordea shortlisted for controlling stake in LG Petro Bank

Nordea, the Nordic region's largest bank, has been placed on the shortlist of investors bidding for a 91.03% stake in LG Petro Bank. Analysts consider that the acquisition of LG Petro Bank would have practical benefits for Nordea, which is in the process of launching on-line banking services, an area where LG Petro Bank has extensive experience. LG Petro Bank is also considered to be a well-managed bank, offering high returns on investment, while its operating costs are among the lowest on the market. An unnamed Nordea official quoted by Reuters said, "We are interested in taking over LG. We're on a good path." LG Petro Bank's strategic investor is South Korea's LG Investment and Securities, which has long been looking to sell its 55% holding. Other key shareholders, among them PKN Orlen, KBW Belchatow and Energetyka Poznanska, are also seeking a buyer for their stakes. Nordea's competitors in the bid include banks from Spain, Italy and France. Puls Biznesu points out that any buyer will have to pay a premium for the controlling stake in LG Petro Bank, and would be expected also to make an additional financial commitment of zl.100 million. (Puls Biznesu, p. 8; Reuters) M.T.