Dutch insurer Eureko will purchase a stake of 10% in PZU from Bank Millennium for zł.1.6 billion

Dutch insurer Eureko will purchase a stake of 10% in PZU from Bank Millennium for zł.1.6 billion. The transaction is due to be completed before the end of this year. The reaction of investors following the decision was rather negative and sent Millennium's share price tumbling by 5.7% to zł.3.3. "We signed the contract on Tuesday. We will receive payment in two tranches. The first one will be transferred by the end of the year, while the second after the public offer of PZU (planned by the end of May 2005)," said Bank Millennium spokesman Wojciech Kaczorowski. The transaction will be executed only after Eureko receives the green light from the Competition and Consumers Protection Office (UOKiK). Due to the fact that Millennium estimated the value of the stake at zł.1.19 billion in its books, and bought it for zł.1 billion, the selling price is very favorable. "This is the minimum sum on the contract," added Kaczorowski.