PZU weathers a stormy shareholders meeting

The most fierce debates concerned a dividend topping as much as zł.1.5 billion, which will not be paid out at all. Eureko, a major foreign shareholder in PZU, wanted half of the 2006 profit to be distributed among the shareholders. The largest shareholder in the company, the State Treasury with 55% stake, decided however that all profits amounting to almost zł.3.3 billion would be left in the company. This was justified on the grounds  that PZU needs funds to cover its investment projects. The management board announced plans to purchase a bank, to establish a fund and acquire a senior position on the market of insuring agriculture products against flood and draught, which will become complusory as of next year. This means that the company is moving towards creating a large financial and banking institution. In reality all of the plans could easily be financed with the remaining profits after a dividend payout. The State Treasury blocked the dividend to stop money going to Eureko, with whom it was battling over PZU for a long time. (Rzeczpospolita, pp. A1, B1; Gazeta Wyborcza, p. 19) M.M.