Let the government not interfere in banks – Republic

the Situation is forcing UniCredit for a quick sale of assets foreign. And the most valuable of great value Italian Bank Pekao without a doubt. What the Italians want the Bank to sell, has nothing to do with their long-term strategy. This is a classic, and special rescue operation. After the sale of UniCredit greatly reduced. Will be seriously depleted its revenues. The head displayed with panache and implemented expansion plans in the segment of Emerging Europe would be permanently closed. It happens. Although I doubt it in the long term in the interests of UniCredit, because it means a fall from the first, at least second League. But it is their right. Their choice, for which you do not see alternatives.

why spend billions

Our law, in turn, ask: what interest has the Polish government to spend government-controlled company 13 billion to repurchase a controlling stake from the Italians? How, if such a transaction met the rights of minority shareholders of a public company, which is Pekao?

– why the government, the Bank, odkupowany expensive in a hurry for the money that subsidiaries of the state can and should spend on the goals closely related to their core activities. Because the main region of interest ROM don’t think banking? And Russian Development Fund (PFR) should not would rather spend money on the purchase of banks, but also to Fund projects that invest in the design plan Morawieckiego?

For when purchasing for government-controlled PZU private Aliora, and then use the money PZU part of the Bank (BPH – ed.), owned by GE, was imposed on us questions about the economic sense of the strategic purpose of such transactions where the “domestication” of private banks controlled by foreign investors is carried out in the way of their de facto nationalization. And then what we heard in response? It is not about any ideology, but to increase shareholders value of the company-buyer.

so you Need to put a question the ROM: if the acquisition Alior Bank, and later Bank GE fragments, impact on a higher valuation of the company? Or small shareholders will receive you bonus in the best prices or higher dividends? What are the opportunity costs of host investment funds outside the core business? And, finally, the Council PZU expects that now, after the possible acquisition of the Bank Pekao? What is the value added of this transaction for shareholders? Can the Council expects growth of quotations of both companies? Can payments ekstradywidendy 2016.?

Such expectations are weakly embedded in reality. After all, the same message that the transaction is possible, the market has responded with sales and low prices. I have to explain why is it that when the state enters into a private company, investors prefer to withdraw from it?

After which the Bank Foundation

how can participation in the transaction of redemption of the Italians of the Bank Pekao has statutory objectives PFR? The money Fund must be received for projects included in the “Strategy in favor of responsible development”? To control the government through two affiliated banks OK. 30%. in the market of lending to legal entities, non-financial to understand, by the way, as introduction to Finance investment projects, the priority state? Don’t even want to think about the fact that someone in government could something to think about.

Discussion on the “domestication” of foreign banks in Poland is we have a lot of years with variable intensity. And it may seem that achieved it already was not even sure konsens between supporters and opponents of the concept. He is thriving, roughly speaking, on two pillars.

first, it is better to have a Bank decision-making center in the country than abroad. This issue requires broader justification. Is konsensie, which means in this case a compromise on the part of those who idealistycznie believe that the majority of the foreign investor does not restrict the operational independence of the subsidiary in the country.

second, however, the process of “domestication”, if there is to that favourable conditions should be achieved without the active participation of the state, because the government odkupujący banks simply their nacjonalizuje. And the nationalization of banks in a market economy weapons only in one case: when there is a way to avoid the collapse of the system. A state with such investments must exit immediately as soon as market conditions. So it was in many cases after the 2008 crisis in the United States and in Europe.

“Domestication” of conditions and situations – can be justified when individuals national making the acquisition of shares from a foreign investor. And this, in turn, compromise on the part of those who believe that the participation of foreign countries in the domestic assets of the Bank should be limited.

subsidiaries controlled by the government, do not meet the criterion of a private legal entity. On the cast of their boards of Directors, boards of management, the choice of strategy, many business decisions, especially those that require a substantial capital raising and the creation of reserves for risk, that is, in principle, all explain here – just as in any market – większościowi shareholders. In companies SP policy.

the Italians have already sold well. 10% of its shares in Pekao S. A. in the way of deals of the market. I do not find any justification, in addition to the convenience of the seller, why the Polish government will contribute to Italy full exit from this investment, declaring to wyprzódki desire to buy back the remaining part of the control package.

Let the Italians sell Pekao S. A. on the market. If they have to. PZU has been let by the increase of the company value for shareholders by implementing the main profile of their activities. PFR let invents projects for funding in the plan Morawieckiego. And the government is happy to let his series in PKO BP, and its time of 16.4% share in the Bank’s assets in Poland. Everyone – the government, public companies and the government are obliged to respect the rights of minority shareholders. Not “udomawiajmy” banks nacjonalizując them. Because it’s sick ambitions. And nothing good can not arise.