According to Polish daily Parkiet, citing Wojciech Kwasniak, deputy Head of Polish financial market regulator, PFSA is unwilling to accept a situation wherein a private equity fund is a leading investor in a bank. He has added that PFSA expect any entity buying above 10% stake in a bank to have long term investment horizon i.e. 10 years. Our view: Recently the newspapers speculated that interest in Alior Bank comes mostly from private equity funds, and due to above mentioned obstacles, some of them would like PZU to team up with them. Although the management of PZU has not excluded acquisitions in any prospective project (including banking sector), however it supposed to be a minority stake. PZU has some PLN 6bn-PLN 7bn budget which could be used for M&A activity according to the management. We believe it would still be unacceptable for PFSA. We expect the news to have a neutral trading impact.