Pekao absorbs Bank BPH to become biggest in region

In April the general assemblies of shareholders from both banks are to decide on the division and merger. The deputy president of Pekao, Luigi Lavaglio, said that the share issue of Pekao shares for Bank BPH shareholders could take place in June, while in the first half of 2007 preparations will be undertaken to choose an investor to buy the smaller part of Bank BPH. After the merger, Pekao will absorb Bank BPH's corporate banking arm, its 285 branches, 420 franchise branches and staff. Pekao will also take over part of BPH's headquarters and a part of its retail customers and small and medium companies. The merger will definitely benefit Pekao as not only will it be the biggest bank in the region, but Jan Krzysztof Bielecki, Pekao's president, estimates that in 2009 the synergies from the merger will be worth zl.240 million. (Puls Biznesu p.14) M.M.