PZU CEO in talks with UniCredit on buying Pekao - Reuters

Michał Krupiński, the CEO of Poland's biggest insurer, PZU, is flying to Milan for talks on buying Poland's second-largest bank, Bank Pekao SA, from its owner, the Italian bank UniCredit, Reuters informed, citing two sources familiar with the matter. A Reuters' source close to the transaction said that UniCredit has already decided that a 40.1 percent stake in Pekao is up for sale, while a different source claimed that PZU would be the main buyer of Pekao, as it has up to PLN 7 billion in cash on hand. "The PZU-Pekao transaction is possible, but it has to be sorted out. Such a deal could be done along with secondary public offering of some Pekao shares. Also, the state fund PFR may be involved," the same source said. The negotiations are part of the government's larger agenda of taking back control of the country's banking sector, which is 58 percent owned by foreign investors.