Czech insurer Ceska pojistovna (CP) on Thursday July 11, submitted a binding bid for 55.16% in Slovak bank Postova banka which is being sold by the Slovenska konsolidacna bail-out agency, CP spokesman Richard Kapsa said.

Thursday was the deadline for submitting binding bids for Postova banka. Due diligence in the bank was performed also by ING Bank and Slovak bank Tatra banka which belongs to Austrian banking group Raiffeisen. Over 34% in Postova banka is held by Slovak financial group Istrokapital which is thinking about selling its stake together with the government's share. "CP is holding talks with this group on proceeding jointly with the aim of purchasing its stake or signing a shareholder agreement," Kapsa added.

The result of the tender should be known by the end of July. If CP enters Postova, it wants to use its experience in the merging of banking and insurance products gained on the Czech market. In the Czech Republic, CP controls eBanka and holds a majority stake in Prvni mestska banka. Postova banka has the largest network of branches in Slovakia. In the first quarter it grossed 37.1m crowns.

Ceska pojistovna, the largest Czech insurance company, billed premiums worth 31bn crowns last year. It manages 15m insurance policies. Its principal shareholder is CESPO B.V. of the PPF group. PPF owns 85% of CP and 12.64% is held by CP itself.

(NewsBase 12.vii.02)