PZU purchase of Pekao expected soon

The plan by Poland’s largest public insurer, PZU, to buy a large percentage of shares in Pekao Bank should be known within two weeks, according to a Polish press source. “Due diligence continues, there is a chance that it will end this week. (However) it is likely that we still need a week or two to agree on a price and certain other terms of the transaction,” the source said, according to the press release. It was confirmed in mid-October that PZU is negotiating with the Polish Development Fund as it plans to purchase UniCredit, which would give it a significant stake in Pekao. UniCredit presently has a 40.1 percent stake in Pekao. Reportedly, the negotiations have involved PZU buying PLN 11 billion, or approximately 30 percent, of Pekao’s shares.