According to Polish daily Puls Biznesu, citing unnamed source, Unicredito is preparing a legal answer to the Polish government ultimatum. Unicredito states that it was Polish government that breached Bank Pekao privatization agreement. A provision that has been breached by the government, according to Unicredito, stated that all disagreements between two parties of the contract should be resolved in negotiations in good faith. This could further imply that Unicredito is determined not to sell Bank BPH. We reiterate our Buy rating on Bank Pekao for those with patience. On valuation grounds, we rate the more expensive Bank BPH a Hold.