Poland’s biggest insurer PZU broke off talks with GE regarding the acquisition of BPH Bank after failing to agree on the sale terms. GE refused to set its asking price below book value. According to sources close to the negotiations, GE is reportedly expecting a generous bonus on BHP’s current market capitalization, which now stands at PLN 3bn.
Market observers claim PZU would have been willing to pay an additional PLN 300m for BPH, but GE’s expectations are reportedly higher. With an election looming, shareholders at the state-owned PZU were unable to meet GE’s asking price.
