PZU Zycie strikes deal with Citibank for Handlowy stake

"PZU Zycie, the life insurance arm of Powszechny Zaklad Ubezpieczen (PZU) Poland's largest insurance company, will answer the call of Citibank to sell its 8% of shares of Bank Handlowy (BH)," said PZU Zycie president Grzegorz Wieczerzak. The reaction of the parent company is unknown. Citibank Overseas Investment Corporation, the international partner of Citibank Poland, called for the sale of BH shares for zl. 70 per share on Monday. The stake would give Citibank 66% of shareholder votes. In related news, PZU Zycie earned a net profit of zl. 182.4 million in the first quarter of 2000. The result was due to the sale of BIG Bank Gdanski (BIG BG) and BH. PZU Zycie received zl. 117 million for BIG BG and zl. 35 million for BH. "Without these transactions the profit would be lower by about zl. 60 million," said Wieczerzak. It is worth noting that Wieczerzak is also one of the suspended board members of PZU. (Rzeczpospolita, page B13, Prawo i Gospodarka, page 1,9) M.M.