Deutsche Bank closer to takeover of BIG Bank
WARSAW: The Securities Commission has stopped investigating Deutsche Bank's
bid to gain control of Poland's fifth largest bank, bringing the German
giant closer to its goal, a newspaper said Friday.
Rzeczpospolita daily said the information was unofficial and gave no reasons
for the decision taken Thursday by Poland's securities regulators.
But it called the decisions a "success" for Deutsche Bank which is taking
steps to control BIG Bank Gdanski SA and strengthen its position in Poland,
a leading trading partner for Germany.
Spokesmen for the commission were not immediately available for
confirmation, and Deutsche Bank refused to comment on the report.
Deutsche Bank unleashed a storm of controversy in January when it
unexpectedly pushed for the replacement of BIG's nine-member supervisory
board with a 19-member one supporting the German takeover.
The old management and other investors protested, prompting the Securities
Commission to investigate Deutsche Bank's links and strategy.
In February, Deutsche Bank increased its stake in BIG Bank to 16 percent
when it bought 3 percent of BIG shares from an ally in its takeover plans -
a subsidiary of the state-controlled insurer PZU.
Deutsche Bank has since asked Polish regulators for permission to increase
its control of BIG to 33 percent.
BIG lacks a majority owner, and its shares are divided among several Western
and Polish financial institutions. It has been struggling to remain
independent in a sector that now is about 60 percent controlled by foreign
capital.
The fight for control of the bank has caused an uproar in Poland, where
politicians increasingly worried about foreign control have criticized what
they said was a hostile approach by Deutsche Bank. (AP)
For reprint rights: Times Syndication Service
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