UniCredit Says in Talks With Poland’s PZU, PRF Over Pekao Stakeby
Polish insurer, state fund discussing ‘significant’ purchase
Italian bank says ‘no certainty’ on terms for any transaction
The Italian bank is exploring “the possibility of executing a deal involving its subsidiary Bank Pekao,” UniCredit said Saturday in a stock-exchange statement. “However, there can be no certainty as to the terms upon which any such transaction might potentially proceed.”
Earlier Saturday, PZU said it was in discussions with UniCredit to buy “a significant” stake in Pekao. PZU said talks began Sept. 28 and no final decision had been taken yet. The statements followed a report by the Wall Street Journal on Friday saying the companies were close to a deal.
The insurer is undertaking a group-wide strategic review aimed at reinforcing its capital position and improving profitability.
UniCredit Chief Executive Officer Jean Pierre Mustier is seeking to raise capital buffers and bolster profitability through measures such as asset sales. The company will unveil a new business plan on Dec. 13 in London, according to the statement.