Treasury to sell Eureko 25% of PZU upping stake to 45%

The Treasury Ministry is considering changes in the privatization strategy of the largest Polish insurer, Powszechny Zaklad Ubezpieczen (PZU). Treasury Minister Emil Wasacz said on Thursday he had been cleared by the Cabinet Economic Committee (KERM) to sell 25% of the Treasury held shares of PZU. It is said the potential investor will be pan-European insurer Eureko. After the deal it will hold a 45% stake. "Eureko has always wanted to hold a package in PZU which would allow it to influence the management. We want to do that in a controlled manner," Wasacz told reporters at a privatization seminar. It is clear Eureko which last year bought 20% of PZU in consortium with BIG Bank Gdanski (BIG BG), which holds 10%, had pressed the Ministry to make the decision. PZU, which controls 60% of Poland's insurance market, is to enter the Warsaw Stock Exchange (WSE) late this year or early 2001. (Rzeczpospolita, page A1, B5, Reuters) J.K.