Partners feud over ownership of PKO/Handlowy fund

Citibank is determined to break the deadlock in the ownership situation of PKO/Handlowy pension fund, in which Citibank's subsidiary, Bank Handlowy, holds a 50% stake, say unofficial sources. The remaining 50% is held by state-owned PKO BP S.A. bank and the two shareholders not only are competitors in retail banking, but also seem to have different views on the strategy for the pension fund. Citibank earlier declared it is aiming for at least 600,000 fund members, and this is only possible through takeovers of other funds. PKO BP, meanwhile, cannot afford to invest in subsidiaries before its upcoming privatization as it has great financial needs itself, say inside sources. This means the bank is unlikely to make any decision regarding the pension fund before its privatization strategy is announced. However, Citibank is not willing to wait. After conducting due diligence at Handlowy and its subsidiaries, it will either move to buy PKO BP's stake in the pension fund or offer to sell its own. (Rzeczpospolita, page B5)