According to a front page article in Polish daily Parkiet, the state treasury wants to obtain a position of a 'preferential shareholder' in PKO BP, which would entitle it to retain control of the supervisory board (and hence management board) unless another investor obtains at least a 75% stake in the bank. Currently, the state treasury holds 51.59% stake in PKO BP (as at December 2005), while 10.36% is held by employees (with 2 years lockup period, intentionally 15%). Despite the possibility of an increased free float in PKO BP, by as much as 21.95%, should the state follow-up a with a placement, we would view any perpetuation of the state's control over the bank, on such a double standard, negatively. Despite making the front page of a prominent daily, we doubt the rumours will have a material trading impact today.