Bank Austria Creditanstalt announced yesterday that its shareholders are set to agree (subject to final negotiations between Unicredito Italiano, HVB, BA-CA, private foundation AVZ, and workers council (BR) Funds) that BA-CA will act as a sub-holding company for the CEE banks (ex Poland) within the Unicredito Group. At the same time, it appears that BA-CA will transfer its asset management businesses Capital Invest and Asset Management (AMG) to the asset management unit of the Unicredito Italiano group. The net impact will entail a capital increase and, of course, correspondingly higher earnings potential for BA-CA. Whilst the transactions are to be conducted 'at arms length' with independent advisors determining valuations, the influence on BA-CA's valuation is unable to be determined at present. Therefore, whilst we view progress on the negotiations positively, the trading impact of the announcement is neutral.