Pekao shares plunge following news that EBRD is to partially exit the bank

Rumors are circulating that the European Bank for Reconstruction and Development (EBRD) intends to sell just under half of its 6.61% stake in Bank Pekao SA. This information caused a spectacular sale of Pekao's shares on the Warsaw Stock Exchange (WSE) yesterday afternoon, causing its share price to plunge by 5.47% to zł. 103.5. According to unofficial informal information, the sale will be organized by SSSB brokerage house, but they declined to comment on the issue. The price offered by EBRD is said to be zł. 103 per share. Pekao SA's major shareholder is UniCredito Italiano, which currently holds a 53.05% stake in the bank. The remaining shares are owned by EBRD, the Treasury (4.14%), Allianz AG (2.13%) and other minority shareholders. In the third quarter, the net profit of the Pekao SA group dropped to zł. 252.03 million from zł. 272.5 million generated in the same period of 2002. (www.onet.pl) A.Z.