TARNOW, Poland, Dec 1 (Reuters) - PKO BP will forgo a 2008
dividend as Poland studies a capital increase to boost the
state-controlled lender's war-chest for potential takeovers, the
country's treasury minister said on Monday.
"I've decided that PKO BP will not pay a dividend from 2008
(profit) to give it additional funds for mergers and
acquisitions in the banking sector," Grad told reporters in
Tarnow, southern Poland.
PKO, Poland's second-largest bank by assets, paid 1.1
billion zlotys ($361.6 million), or 38 percent of last year's
profit, as dividend. In previous years the bank usually returned
around 40 percent of annual earnings to shareholders.
"We are working on raising the capital of the bank and there
are different ways to do it," Grad said.
"It will not be because PKO is in difficult financial
conditions, but to more effectively take advantage of potential
opportunities for takeovers."
The statement echoed the treasury's earlier comments that
PKO, in which the state holds a 51.5-percent stake, should look
for local and foreign takeover targets after the global
financial crisis cut the price of its rivals.
The ministry's officials have also said PKO will have to
sell new shares to finance its growth, allowing the government
stake in the lender to fall below 50 percent.
CONSOLIDATION
"The government is trying to force through its plans for PKO
BP to lead consolidation in the region," said Marek Juras, the
head of research at BZ WBK brokerage in Warsaw. "Forgoing this
year's dividend will not be enough to buy something large."
The bank had a net profit of 2.7 billion zlotys in the first
nine months of this year.
Media speculated earlier this year about tie-up plans
between the PKO and Hungary's OTP, Eastern Europe's second and
third largest listed lenders.
The bank was also rumoured to be interested in bidding for
the Polish unit of AIG after the troubled U.S. insurer said it
would unload non-core assets.
PKO BP's previous chief executive was also quoted as saying
he would be interested in buying Citigroup's Polish unit
CitiBank Handlowy if it were put up for sale.
By 1233 GMT, shares in PKO BP were down 2 percent, in line
with Warsaw's blue-chip WIG20 index, and unchanged compared with
levels before the treasury minister's comments.
(Writing Piotr Skolimowski and Patryk Wasilewski; Editing by
Jon Loades-Carter)
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