Polish bank PKO BP negotiates purchase of AIG's banking and lending operations in Poland

WARSAW. INTERFAX CENTRAL EUROPE - Polish state-controlled bank PKO BP (36 PLN, 0,47%) in late November filed an offer to buy 99.92% in AIG (2 USD, -5,70%) Bank Polska and 100% in AIG Credit, the bank said in a statement Wednesday.

The bank is currently negotiating the purchase, but has no exclusivity in the talks.

"In the case of the execution of the share purchase agreement, their acquisition will take place after conditions are met that result from the provisions of the Polish law," the bank said.

PKO BP will finance the possible acquisition out of its own coffers.

The bank's executives have recently declared they would ask shareholders to approve the cancellation of the dividend payout for 2008. The bank's main shareholder, Treasury Minister Aleksander Grad, said earlier the ministry may decide against the dividend payout if PKO BP had large investment projects, including acquisitions.

AIG Bank operates on the consumer finance market. Its net profits in 2007 were at PLN 247 mln, up 20.6% from 2006. The bank's net profits in January-August 2008 were at PLN 193.1 mln, while its assets were at PLN 8.12 bln.
 
Interfax