Polish state-controlled bank PKO BP will file an offer for Bank Zachodni WBK, the Polish unit of AIB, next week. This is according to comments from Poland's Treasury Minister Aleksander Grad.
The Polish government said yesterday that it would support PKO BP, a move that came ahead of an expected bidding war between major European players such as the Spanish bank Santander, French bank BNP Paribas and Italian bank UniCredit.
Asked why he believed the country's top lender would be capable of financing the purchase on its own, Grad said: 'It is not a belief, it is certainty. On June 28, PKO BP will present its offer for buying a stake in BZ WBK'.
Grad said the bank has kept 2 billion zlotys ($695m) from its 2008 profit and its capitalisation was boosted by 5 billion in 2009 when it also posted a profit of 2.4 billion.
Poland had wanted to keep Bank Zachodni in domestic hands. Officials are concerned that in the event of another financial crisis, foreign owners may withdraw funds from their Polish units or could bring lending to a halt.
AIB has a 70% stake in the bank, which it put up for sale in an effort to improve its capital position.
