PZU privatization: Shortlist may bring conflict of interest

Daily Prawo i Gospodarka has learned that a shortlist of bidders to advise the Treasury in the second phase of privatizing insurer Powszechny Zaklad Ubezpieczen (PZU) is ready. Among those on the shortlist are consortia of Schroders and Solomon Brothers, ABN Amro and Merrill Lynch, and the law firm Weil Gotshal & Manges. The successful bidder will be announced, upon acceptance by the Treasury Minister Emil Wasacz, by the end of May. All bidders have either participated in the previous stage of PZU privatization or in the privatization of other financial institutions, a situation which may cause a conflict of interest. Solomon Brothers advised a consortium of Eureko and Big Bank Gdansk to acquire 30% of PZU, while ABN Amro advised the Treasury. Merrill Lynch is advising Bank Pekao, which may adversely affect its ability to advise clients who are competitors. (Prawo i Gospodarka, April 22-24, page 1) S.M.