PZU dividend payout dependent on the Treasury's whim

The management board has recommended a level of 50%, however, this figure is likely to be reduced by the Treasury Ministry that has four members on the supervisory board. Eureko, the other main shareholder, also has four members, so the parties will have to reach a compromise. If one is not reached, the final decision passes to the annual shareholders meeting (scheduled for May), but even here the Treasury has the upper hand as the state controls 55% of the votes. PZU posted a 2004 net profit of zł.2.19 billion net, which is the best result in its history and the most any financial institution made in Poland last year. According to estimates, if the 50% bracket is accepted a zł.8.2 dividend will be paid per share. In the worst case scenario it may be zł.2.5. (Parkiet p. 5) M.G.