Shareholders approve Kredyt-PBI merger; new share issue planned

The new bank plans to start operations by September. Kredyt Bank recently won a tender to purchase PBI from the National Bank of Poland, outbidding GE Capital and Creditanstalt. Although the merger will not increase either bank's capital, the new entity will raise funds through an issue of 25 million new shares. The issue is expected to raise up to 270 million zl. and will be sold in three tranches to existing shareholders, select investors and stock exchange investors. At the shareholders meeting, Kredyt Bank PBI SA said it expects to increase net revenues this year to 70 billion zl. and hopes to see this figure jump to 150 billion zl. in 1998. (Dziennik Prawa i Gospodarki page 1, Zycie page 12)