By Agnieszka Barteczko and Chris Borowski
WARSAW, June 22 (Reuters) - Poland will back a likely bid by state-controlled lender PKO BP for Allied Irish Banks' Polish unit, a government minister said, throwing a spanner in the process expected to attract heavy interest.
A long list of banks, including Spain's Santander, France's BNP Paribas and Italy's UniCredit, are expected to put forward non-binding bids for Allied Irish's Bank Zachodni WBK by an end-June deadline, if only to get a peek at the books of one of Poland's strongest lenders.
But Poland's financial regulator and other officials have said they could use the opportunity to reduce foreign participation in Poland's banking sector from 70 percent now.
'I would like to state clearly that it's not trivial for Poland who will buy this bank (BZ WBK) and how it is done,' Treasury Minister Aleksander Grad told a news conference. 'PKO will be strongly supported by us in this process.'
He also added that the ministry, which controls 51 percent of PKO, would suspend the bank's annual meeting this week to decide whether to cut the proposed 1 billion zlotys ($347.3 million) dividend to build up a potential warchest.
Investors had been hoping that a bidding war for BZ WBK would ensure an attractive price when the winner is forced to buy the 30 percent of the Polish lender not in Irish hands.
Under Polish law, an investor who surpasses 66 percent ownership in a listed company must bid for the rest.
Shares in PKO edged up 0.5 percent by 1035 GMT, while BZ WBK was flat, in line with the wider market.
BZ WBK shares had risen as much as 12 percent since Allied Irish, under pressure from the Irish government, said it would sell foreign assets, including its 'crown jewel' BZ WBK.
But in June, amid rising talk of a favoured domestic buyer, the stock shed nearly 4 percent, touch more than Warsaw's banking index.
(Editing by Michael Shields) ($1=2.879 Zloty) (chris.borowski@reuters.com; +48 22 653 9712; Reuters Messaging: chris.borowski.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
WARSAW, June 22 (Reuters) - Poland will back a likely bid by state-controlled lender PKO BP for Allied Irish Banks' Polish unit, a government minister said, throwing a spanner in the process expected to attract heavy interest.
A long list of banks, including Spain's Santander, France's BNP Paribas and Italy's UniCredit, are expected to put forward non-binding bids for Allied Irish's Bank Zachodni WBK by an end-June deadline, if only to get a peek at the books of one of Poland's strongest lenders.
But Poland's financial regulator and other officials have said they could use the opportunity to reduce foreign participation in Poland's banking sector from 70 percent now.
'I would like to state clearly that it's not trivial for Poland who will buy this bank (BZ WBK) and how it is done,' Treasury Minister Aleksander Grad told a news conference. 'PKO will be strongly supported by us in this process.'
He also added that the ministry, which controls 51 percent of PKO, would suspend the bank's annual meeting this week to decide whether to cut the proposed 1 billion zlotys ($347.3 million) dividend to build up a potential warchest.
Investors had been hoping that a bidding war for BZ WBK would ensure an attractive price when the winner is forced to buy the 30 percent of the Polish lender not in Irish hands.
Under Polish law, an investor who surpasses 66 percent ownership in a listed company must bid for the rest.
Shares in PKO edged up 0.5 percent by 1035 GMT, while BZ WBK was flat, in line with the wider market.
BZ WBK shares had risen as much as 12 percent since Allied Irish, under pressure from the Irish government, said it would sell foreign assets, including its 'crown jewel' BZ WBK.
But in June, amid rising talk of a favoured domestic buyer, the stock shed nearly 4 percent, touch more than Warsaw's banking index.
(Editing by Michael Shields) ($1=2.879 Zloty) (chris.borowski@reuters.com; +48 22 653 9712; Reuters Messaging: chris.borowski.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.