According to the Polish daily Parkiet, Banking Supervision Commission didn’t vote on Bank (236 PLN, -1,34%) and Bank (888 PLN, -0,22%) merger approval on yesterdays meeting. Press speculates that the final decision is probable to come on the regulators meeting in October.
Our view: We believe that the news is neutral for both banks as the delay from the regulator was expected. According to the previous management comments the operational merger may last up to seven month and the legal merger should be completed in a month time after obtaining the supervisory approval. We believe the news should have a neutral trading impact on the stock price of both banks today.