The Treasury succumbs to pressure and postpones sale of PZU to Eureko

Following the intervention of the Sejm Sate Treasury commission, the Treasury Ministry has postponed the sale of 30% of shares in Polish insurer Powszechny Zaklad Ubezpieczen S.A. (PZU). The shares were to be sold to the pan European insurance group Eureko, which already holds minority shares in PZU. A possible sale of PZU shares to Eureko would raise Eureko's stakes to 55%, putting the insurer in control of about half the Polish insurance market. PZU's privatization is controversial for two reasons: PZU is bigger than Eureko in terms of capitalization and has no board after its suspension by Treasury Minister Emil Wasacz. The Cabinet was to table PZU's privatization today, but that also has been postponed for at least a week. (Zycie, page 1, Parkiet, page 7) S.M.