Treasury Ministry changes PZU share offer to Eureko

The Treasury Ministry (MSP) is willing to offer banking consortium Eureko a 19% stake in major insurer Powszechny Zaklad Ubezpieczen (PZU) for zl. 2.77 billion, reports Puls Biznesu. The figure had been initially agreed upon as a price for 21% of PZU's shares. Negotiation of the sale has been suspended for the last three weeks, ever since Treasury Minister Wieslaw Kaczmarek declared that a takeover of the insurance company by Eureko would violate the terms of privatization, and that he does not intend to prolong a preliminary agreement which expires on December 31, under which Eureko would have purchased 21% of PZU. Under the new MSP proposal, the holding would have to pay nearly zl. 170 per share rather than zl. 153, as had been proposed by former Treasury Minister Aldona Kamela-Sowinska. Furthermore, Eureko would only get 49% of PZU shares and would have to purchase stock from company employees in order to get majority control of PZU. "Eureko does not intend to make any concessions, as it claims it has come to a valid agreement with the government," an insider stated anonymously. Eureko seems to have the upper hand in the conflict, as it has first rights to purchase a 21% stake if the MSP holds a public offering of PZU stock. Demand for PZU shares is said to be minimal among major foreign insurers. (Puls Biznesu, p. 1, 6) M.K.