MARKET RACE PROTECTION AGENCY GRANTS FOREIGN PARTNERS ENTRY INTO ZAGREBACKA BANKA

ZAGREB, Oct 16 (Hina) - The council of the agency for the protection of the market race has granted the unison of business people of Zagrebacka Banka, UniCredito Italiano S.p.A. and the Allianz A.G. The council has concluded that "the bidder Unicredito Italiano has this time provided sufficient guarantees that it would, within a reasonable period and conditions acceptable for the Agency give up on its share in the Splitska Banka and secure a free market race on the banking market." Subsequently, the council made a decision in favour of the merge. On September 11, based on a similar bid, the Agency said it did not oppose the entry of Unicredito and Allianz into the Zagrebacka Banka, but the concentration at the time was unacceptable because of the Unicredit's existing majority share in the Splitska Banka. The Agency also said that if Unicredito "in a fairly short time and completely give up its share in the bank", a new decision on the concentration could be made. In May both Unicredito and Allianz tendered their bids and withdrew them next month, asking the Croatian National bank to agree to their acquiring of up to 90 percent of Zagrebacka Banka stock. Because the bid was withdrawn, it was not officially discussed at the Croatian National Bank Council, but was discussed by the Bank's expert services which advised its dismissal. They explained that the take-over of the Zagrebacka Banka by the consortium could have negative effects on the monetary and foreign exchange policy, which would aggravate the achievement of the national bank's main goal which was to achieve and maintain the stability of prices. (hina) lml sb