Treasury makes shocking move to void PZU privatization

Treasury Minister Andrzej Chronowski filed a motion in court to annul the sale of a 30% stake in Poland's largest insurer Powszechny Zaklad Ubezpieczen (PZU) to the Eureko/BIG BG consortium. Chronowski charges that the consortium broke the terms of the privatization agreement by stating a false motive for acquiring a stake in PZU. According to him, instead of developing the insurer, the consortium was really only interested in protecting the BIG BG bank, in which PZU holds a stake, from a hostile takeover. "We are shocked... We are a consortium of companies from eight European countries. When these companies learn how we are being treated here, they will think twice before investing in Poland," said Eureko representative Ernst Jansen. Former Treasury Ministers Janusz Lewandowski and Wieslaw Kaczmarek also expressed shock at the decision. Meanwhile, PZU president Jerzy Zdrzalka, who is supported by Eureko and in conflict with the minister, said that the decision means that PZU will not debut on the stock exchange next year, meaning a loss of at least zl. 5 billion for the Treasury. (Gazeta Wyborcza, p.1