Polish bank PKO is to buy AIG’s local actives
The second-largest Polish bank PKO BP, possessed by the state, negotiates for purchase of local branch of American insurer American International Group Inc.
PKO management battles to the basic competitor in the Polish bank sector – Pekao, which is supervised by Italian financial group UniCredit.
Concerning the purchase of actives AIG, PKO is not going to finance the transaction from own capital, for these purposes the bank is going to involve the additional capital.
Sale of Polish branch AIG is a part of the plan of the American insurance group on attraction of cash after prevention of its bankruptcy owing to the help of the American government at the rate of $152 billion. Analytics estimate Polish business AIG in cost of $0,5 billion up to $1 billion. At the same time, many of them warn of high risks at the similar transaction, which can give РКО more losses, than benefits.