Treasury encourages Eureko purchase of PZU shares

Eureko may buy a 21% stake in Powszechny Zaklad Ubezpieczen (PZU) for zl 2.7 billion in a non-public offer, as early as this week. Last night the government was considering a bid to allow the transaction from Treasury Minister Aldona Kamela-Sowinska. The Minister favors Eureko's acquisition of a majority stake in PZU, and a postponement of PZU's IPO until Eureko's purchase is realized. The Ministry's decision results from the lack of investor interest in the insurance giant's shares. One PZU share is estimated to be worth over 116.5 zl, as established in the annex to the privatization agreement signed in April, which originally gave Eureko a guarantee to take over 21% of the shares after PZU enters public trading. According to an informer of Puls Biznesu, the State Treasury will realize their privatization revenues from Eureko's share purchase, and the PZU public offering will no longer be a priority. The probable deadline for PZU's IPO would shift from the end of this year to March 2002 if the sale to Eureko takes place. (Puls Biznesu, p. 7) P.W.