PZU-Eureko dispute in arbitration court

Dutch-based insurer Eureko and the Polish government began arbitration proceedings in Stockholm on Thursday that could ultimately decide who controls PZU. The long-running and ugly row began when the government of Leszek Miller refused to accept the agreement signed by the previous government of Jerzy Buzek in 2001. According to it, the state was to announce the IPO of the insurer as soon as possible and during these proceedings sell a 21% stake to Eureko. Miller's Cabinet did not treat this obligation as binding, and even declared that control over PZU should remain in state hands. If Eureko wins the arbitration proceedings, then the state might be obliged to pay large compensation to Eureko and sell the stake. (Parkiet, p. 7) M.M.