Biggest bank PKO BP seeks acquisition targets in Poland, CEE.

By bne IntelliNews October 8, 2012
Poland's biggest bank is looking for acquisition targets in Poland, where it would like to take over a cities-focused lender, and in the CEE region, according to its president Zbigniew Jagiello. He argues that in the next six quarters, weaker GDP growth will make life more difficult for smaller banks, with 6-7% market shares. Hence, PKO BP would like to buy a bank in Poland within the next two years. Jagiello revealed that the lender is hoping that e.g. Portugal's BCP could renew the offer to sell Millennium Bank. PKO BP sees three ways to finance such a deal: from retained profits; from issue of subordinate bonds; via cooperation with another institution, e.g. sovereign wealth or private equity funds, or Poland's biggest insurer PZU. Jagiello said that the bank is also open to possibilities that open up in CEE region. Jagiello is interested in Ukraine (where PKO BP already owns Kredobank), but also e.g. in the Czech Republic or Slovakia.

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