BIG BG soars as Deutsche Bank closes in
WARSAW: Shares in BIG Bank Gdanski surged on Monday after Germany's banking
giant Deutsche Bank appeared to have gained effective control of the Polish
bank.
On Monday the Warsaw Stock Exchange resumed trade in BIG BG shares, Poland's
fifth largest retail and corporate bank, after a two-week suspension. In the
single price auction system, BIG's shares surged 10 per cent to a record
high of 14.3 zlotys.
Over the weekend the German banking giant along with its allies gained most
votes at a key shareholders' meeting and placed 10 out of 19 members on BIG
BG's new supervisory board.
Deutsche had clinched control of BIG BG's board at the first part of the
meeting on January 28 but shareholders adjourned the convention to allow an
expert to check capital links between the German bank and its allies.
The adjournment led to a two-week suspension of trade in BIG BG on the
Warsaw bourse.
"The stock has been very illiquid in recent weeks as both fighting camps
have been gathering shares for the shareholders meeting," said a Warsaw
analyst.
Deutsche, with 13.2 per cent in BIG, plans to buy an 8.6 per cent stake in
the bank from Polish state-controlled insurer PZU, which supported the
German bank's hostile takeover. (Reuters)
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