PKO encouraged to plan acquisitions

Poland's biggest state-controlled bank, PKO BP should look for potential local and foreign take over targets as the financial crisis has cut the value of its rivals, the Polish treasury minister said on Tuesday.

Aleksander Grad told Radio PiN that this is a good time for PKO to plan acquisitions, whether that was in Europe or the United States. "This is the time when one can buy cheaply," he said. "Some projects should be seriously considered. Many banks as well as other institutions will be up for sale."

Analysts have said that PKO may look to bid for Polish assets of AIG, after the troubled insurer said it would unload non-core assets. Media also speculated of tie-up plans between PKO and Hungary's OTP.

Source: Reuters