PZU to restructure to break free of shareholder wrangles

Thanks to this structure it will be easier to carry out fiscal settlements, e.g. related to VAT. However, the strategic objective of PZU is to create a holding structure, which requires the consent of the shareholders. This move would aim to lower costs and utilize the effects of internal synergy within the group. Analysts point out that currently the institution is a quite loose federation of companies with quite a high degree of independence. "The management board of PZU has no possibility of executing effective ownership supervision. The structure of corporate governance is not suitable for us. Initiatives allowing the effects of scale to be used are executed to a limited extent," said Cezary Stypu³kowski, president of PZU. According to his estimations, the transformation process would allow a saving of z³.475 million. The holding structure is expected no sooner than in 2008. (Puls Biznesu, p. 7) M.M