Poland Agency Delays UniCredit Decision

Poland Agency Delays UniCredit Decision

Poland's banking authority delayed a decision Wednesday on whether Italy's UniCredit should be granted majority voting rights in BPH, the third-largest Polish bank.

The Banking Supervisory Commission's decision further stalls the merger of BPH with Poland's second-largest bank Pekao SA under Italian lender UniCredit, part of a larger deal between UniCredit and German Bank HVB.

Finance Minister Zyta Gilowska, who took part in the commission's meeting, told reporters the decision was delayed until March 15.

However, National Bank chief Leszek Balcerowicz later said no decision was guaranteed next week, when the seven-member commission resumes deliberations.

Also on Wednesday, EU regulators said they started legal action against Poland for trying to block the planned bank merger.

The European Commission said Poland may have broken EU rules on the free movement of capital and the right of companies to do business anywhere in the 25-nation bloc when it refused to clear the Polish part of the pan-European banking tie-up.

PZU hits new record in 2005

PZU hits new record in 2005

Grupa PZU, Poland’s former monopoly insurer, had PLN 3.2 billion (EUR 825.6m) of net income last year. Half of it is to be given to shareholders.

Grupa PZU, Poland’s largest insurance company, had PLN 3.2 billion of net income in 2005, or over 51 percent more than in 2004. The life business only generated PLN 1.74 billion of net income, or 28.5 percent more than a year earlier. A dividend will be paid out.

“We want to pay out 50 percent of the income”, Cezary Stypulkowski, PZU CEO said.

Earlier, the management said that 25-50 percent of the income would be recommended as dividend.

“We may pay out half of the income because we have no acquisition plans”, the CEO added.

PZU wanted to acquire Bank BPH.

“IF the merger with Pekao fails and the conflict among our shareholders ends, PZU could be a good partner to BPH”, Cezary Stypulkowski said.

(PLN 1 = EUR 0.258)

Hewitt Opens HR Outsourcing Center in Poland

Hewitt Opens HR Outsourcing Center in Poland

Hewitt Associates has opened a new HR outsourcing delivery center in Krakow, Poland. Capable of accomodating about 300 staff, the center will provide customer service support to Hewitt's HR BPO clients in Europe. In addition, Hewitt will conduct pension administration and software development services from the new facility.

"We are delighted to set up our European regional HR BPO operations in Krakow," said Richard Jones, leader of Hewitt's European HR outsourcing business. "There are strong economic, cultural and language connections between Poland, Germany and other European countries, so we expect the Krakow center to serve as an attractive resource for our global and European clients."

With the opening of the Krakow center, Hewitt will have 42 HR BPO service centers in 15 locations, including the United States, Brazil, India, Canada and the United Kingdom.

MTS POLAND ACHIEVES RECORD VOLUMES AS PARTICIPANT BASE EXPANDS

MTS POLAND ACHIEVES RECORD VOLUMES AS PARTICIPANT BASE EXPANDS

MTS Poland is pleased to announce that the turnover in 2005 recorded an increase of 130% compared with the figures in respect of 2004. Trading activity inevitably benefited from the addition of eight new dealers, which brought the total number of participants in the platform to 25 as of 31 December, 2005, a figure that has since risen to 26.

Volume amounted to €35.77 billion (single-counted) in 2005, comprising €27.97 billion in cash market trades and €7.80 billion in repo. In addition, daily average volume in the first two months of 2006 has risen by 50% compared to 2005. As of 31 December, 71 series of treasury bonds and bills were listed on MTS Poland.

All of 2005’s eight new participants were international banks, including two banks which obtained Primary Dealer status. The decision by such banks to join MTS Poland represents a significant step in the integration of the Polish market with the pan-European debt market. Polish Primary Dealers currently account for 15 of the total participants.

In addition, the introduction of repo transactions and buy/sell-back functionality through the new TradeImpact technology in September 2005 improved the performance of the repo market on MTS Poland and facilitated volume growth in repo of 157%. This augurs well for the migration of the MTS Poland cash market to TradeImpact in 2006, a development that will serve to underwrite the effectiveness, access and flexibility for the benefit of participants.

Lithuania, Latvia, Estonia to Jointly Build Nuclear Reactor

Lithuania, Latvia, Estonia to Jointly Build Nuclear Reactor

Lithuania, Latvia, Estonia have signed a memorandum on preparations for building a new nuclear reactor to replace the Ingalin nuclear power plant in eastern Lithuania, Interfax news agency reported on Wednesday.

The new reactor will be bought in the West and installed at the plant before 2020. Three countries agreed to divide $3-billion expenses on its construction in equal parts. But they also may offer cooperation to Poland and private investors.

Ingalin nuclear power plant used to operate the world’s most powerful RBMK-1500 nuclear reactors, but it was closed down due to EU’s safety concerns. However, without a nuclear power plant Baltic countries will remain dependent on Russia, constantly buying energy.