PKO BP must prepare to battle with united BPH-Pekao

According to La Repubblica daily, the terms of taking over HVB should be accepted by the supervisory board of UniCredito Italiano on Sunday. Market analysts expect that PKO BP will have two years to put its company into fighting shape, as over this period BPH and Pekao will be mostly focused on their internal issues. "This time should be used to conclude restructuring, to introduce an integrated IT system, and to strengthen its position in the most important segments of the market," said Marcin Materna, an analyst with Millennium DM. Over the long-run however, the market will see the emergence of a new entity with a larger number of outlets and ATMs, as well as the strongest position in all segments. Analysts believe that PKO BP should also put stress on cutting employment, but this will only be possible after the successful launch of the new IT system, which is expected at the end of 2006. (Puls Biznesu, pp. 1, 6) M.M.