Italian bank UniCredit has agreed to sell the bulk of its controlling interest in Poland’s Bank Pekao to state-run insurer PZU for nearly $3 billion. News reports said PZU would pay about 11 billion zlotys ($2.8 billion) for about 30% in Bank Pekao. UniCredit will keep about 10% in Pekao. Interestingly, almost 60% of banking assets in Poland are in foreign hands and the Polish government is worried about the unnecessary exposure of the sector to global turmoil. The government owns 34.2% stake in PZU. The sale is expected to help UniCredit to increase its share price as well as meet a portion of its capital needs.
