Poland's Banking Supervision Commission (KNB) will meet on Wednesday and is expected to once again address the issue of Unicredito's takeover of Bank BPH. Unicredito CEO Alessandro Profumo stated yesterday that he expects a positive decision at the meeting and that any further delay would not be undertsandable, given the serious negotiations that are ongoing. Today, the ongoing talks will continue, regarding a compromise agreement. We believe a positive decision at tommorows meeting could have a positive trading impact and reiterate our Buy rating on Bank Pekao.
Seperately, in a letter yesterday to the EC, the Polish government maintained its stance, that it has a right to uphold the 1999 privatisation agreement signed by Unicredito. The letter stated that the EC was undermining the rule of law by arguing that Poland doesn't have the right to enforce the agreement. The obstinant position of the Polish government comes as no surprise to the markets and there was no trading impact.