The CEO of Unicredito Alessandro Profumo is to meet Polish PM Kazimierz Marcinkiewicz today to discuss a possible ‘compromise solution’ regarding the takeover of Bank BPH. Whilst PM Marcinkiewicz has said that he is ‘deeply convinced a deal will be reached’, we are sceptical. At the same time, he stated that he believed the banking supervision would agree with the government in its dispute over the privatisation agreement with Unicredito. We believe that Unicredito has a strong case and will be unwilling to walk away from Bank BPH but may still be looking to avoid a lengthy legal battle over the issue and possible further delays to implementing the merger. Whether a compromise is reach will ultimately rest, in our opinion, on whether the demands of the Polish government are reasonable.