PKO BP: buys PLN 55m stake in investment fund company

As expected, Bank PKO BP announced that it has signed a conditional agreement with Credit Suisse to buy-out a further 25% of PKO/Credit Suisse TFI, its mutual fund subsidiary, in addition to the 50% it already owns. The PLN 55m deal is expected to be completed by the end of 1Q06. PKO BP notified the SEC about its attempt to buy back those shares at the end of 2005. PKO/CS TFI had AUM of PLN 5.2bn at the end of 2005 and plans to grow it to PLN 7bn in 2006. We do not expect substantial price reaction on PKO BP shares on the back of this information as the market has already discounted it.