Who is the new BOŚ?

SEB, the Nordic region's sixth-largest bank, said it was bidding zł.73 per share for the 52.7 percent it does not already own in BOŚ.

The deal values BOŚ at around $305 (zł.969) million, and represents a premium of 35 percent over the average value of the shares in the last three months.

"It is nothing big, but its better that they own 100 percent," said one analyst, who declined to be named.

Many Nordic banks had a record year in 2004, boosted by strong economic growth, booming mortgage lending and rising stock markets. However, the region is highly competitive and growth is difficult to come by.

The chief executive of rival Swedbank, Jan Liden, said that 2005 could be the high-water mark for profit growth for the bank in Sweden and that margin pressure would continue. Swedish banks see the fast-growing Baltic countries and eastern Europe as part of their back yard and a way to diversify outside their home markets.

"Just as SEB has successfully achieved in the three Baltic countries, it will seek to build on an increased demand for banking services from both the private and the corporate sector and at the same time support its international clients who are increasing their activities in the market," SEB said in a statement.

BOŚ is Poland's 15th largest bank, with a two-percent market share in deposits and loans and 135,000 customers. It had total assets of zł.6.9 billion at the end of 2004.

"In order for BOŚ to further develop as a truly competitive Polish bank it needs to be part of a strong international banking group that is capable of providing it with technical support and the additional capital for further growth," the SEB statement continued. (Reuters)