Treasury Ministry reaches terms with Eureko over PZU privatization deal

The deal envisages floating PZU shares on the bourse in the first half of 2005, narrowing down the Treasury Ministry stake from 55.09% to 20-30% and making Eureko the largest yet not the majority shareholder. The agreement also includes a clause demanding the presence of independent members in the PZU Supervisory Board and the right of the Treasury Ministry to buy first PZU shares owned by Eureko and European Bank for Reconstruction and Development should they intend to sell it. The agreement has been reached under a lot of pressure, as the trial in the arbiter court in Stockholm is in its last phase. Although the terms of agreement are ready, Minister Jacek Socha is waiting to give his final consent until the project is approved by the government and the motion of the League of Polish Families to reopen the investigation is put to vote. (Parkiet p.1, Puls Biznesu pp.1,8) M.G.