Of Special Interest


[x] [x]

29th November 2011

Little to no interest in Polish banking stakes for sale

Media reports suggest that Millennium bcp received no bids for its 65.5% stake in Bank Millennium. The deadline for bids to be made was last Friday. The bank is understood to have received preliminary bids in September from BNP Paribas, PKO BP and Pekao with Intesa Sanpaolo also expressing interest. Since then the deteriorating European financial situation and requirement to step up capital levels is thought to have dissuaded any from progressing their bids.

Simultaneously KBC is seeking to sell its 80% stake in Kredyt Bank. There were reports that Santander had bid for this stake though it too is having to increase capital and may think twice about progressing the bid.

The sale of the Polish controlling stakes is important for both banks concerned. Millennium BCP must increase its capital and cannot expect any string domestic economic growth, indeed more probable would be a fall in GDP. KBC is required to sell its stake in Kredyt as it restructures following the need for state aid during the banking crisis.