According to Polish daily Parkiet, the Insurance and Pension Funds Supervisory Commission did not allow PTE PZU to merge with PTE Skarbiec (BRE Bank’s subsidiary).
Our view: In our opinion a negative decision is bad news for BRE Bank and, though it may be anticipated by the market, a negative trading impact should be expected. While the bank did not comment on the decision market should expect the companies to appeal from the decision.