PKO BANK Polski plans to make a revised cash bid for a controlling stake in AIB’s Polish subsidiary Bank Zachodni.
PKO, Poland’s largest bank, is bidding for 66 per cent of Warsaw-based Zachodni, less than the 70 per cent held by AIB, because the purchase of a bigger stake would compel it to make an offer for the entire company, according to a source.
Under PKO’s proposal, AIB would place its 4 per cent in the market, the source said. In the final stage of the transaction PKO would offer to buy out minority shareholders in Zachodni with new shares in the merged bank.
AIB is seeking to sell its entire stake in Bank Zachodni as part of a series of measures aimed at raising €7.4 billion by year-end to reach new regulatory capital targets.
Spain’s Banco Santander and France’s BNP Paribas have also made bids for the Polish unit.
A preferred bidder may be identified as early as next week, but is unlikely to be granted exclusivity until later this month.
PKO has told AIB it could probably secure Polish regulatory approval of a transaction within three months of a sale being signed. AIB shares rose as much as 5.3 per cent in Dublin before closing up 4.6 per cent at just under €0.80
“It would be encouraging to see Allied’s sales process coming to a conclusion soon,” said Sebastian Orsi, an analyst with Dublin-based Merrion Capital, who has a “hold” recommendation on the stock.
He estimates the bank could generate about €4.3 billion of capital from the sale of Polish and UK divisions, as well as its 22.5 per cent stake in US lender MT Bank.
Elzbieta Anders, PKO spokeswoman. and AIB spokeswoman Catherine Burke declined to comment on the bidding. – (Bloomberg)
