State treasury conducted an accelerated book building process (ABB) yesterday. It has placed 12.2% stake at PLN 34.25 per share. Our view: According to yesterday news, the initial intention of state treasury was to place 11.75% stake at the market, which shows that the demand was strong. Following this transaction state treasury will hold 31.39% stake. According to the privatization plan for the years 2012-2013, the state treasury plans to lower its stake in PKO BP to a minimum 25%. Thus the potential share overhand is limited to 6.39%. It is not clear however when and if the shares will hit the market, given state-owned Bank BGK is expected to receive among others PKO BP shares (up to 8.36%) to support ‘Polish investments’ project. We believe that the transaction is positive as it will further improve PKO BP’s free float. As we expected the initial reaction was negative as intraday share price was down up to 3.4%, but finally PKO BP shares closed down 1.5% at PLN 34.76. This was already above the placement price.