Polish bank Pekao to up investment this year due to merger UPDATE |
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Mon, 15 Oct 2007 12:03
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(Adds more detail and background)WARSAW (Thomson Financial) - Poland's second-largest bank Pekao, a unit of Italy's UniCredit, will almost double its capital spending this year due to merger costs with its smaller local peer Bank BPH, plans in a company share issue prospectus showed today.The bank said it now expects to spend 500 mln zlotys compared with the 286 mln zlotys set in this year's budget. Around 60 pct of the cost initially was to go into developing its software systems, Pekao said.The bank, which will issue new stock to BPH shareholders as part of the merger, also said it will maintain its policy of rising dividend payouts in the future. Local media have reported today Pekao may have to lower the payouts to shareholders due to investments in Ukraine.'Pekao has a policy of nominal increase in the value of dividend per share,' the bank said. 'This policy has been carried out in past years and the management of Bank Pekao plans its continuation in the future.'Pekao will hand out 3.3 of its shares for every BPH share as part of its plans to merge its peer's 285 branches to create Poland's largest lender by assets. The share issue will take place in the fourth quarter, the bank said.piotr.skolimowski@thomson.com +48 22 447 24 36ps1/sljCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Polish Pekao to take control of UniCredit Ukrainian operation - report 