UNICREDITO, ALLIANZ TO BUY ZAGREBACKA BANKA

ZAGREB, Dec 19 (Hina) - The Croatian National Bank (HNB) Council on Wednesday adopted a projection of the bank's monetary policy and financial plan for 2002 and granted consent to UniCredito Italiano SpA from Milan and Allianz AG from Munich to acquire up to 100% of voting shares in the Zagrebacka Banka from Zagreb, and to Bank Austria AG from Vienna to acquire 100% of voting shares in the Splitska Banka from Split. According to a statement issued by the HNB, the capital stock of the Zagrebacka Banka amounts to DM289 million and is divided into 2,884,928 shares. Of 2,714,000 shares, which on 17 September 2001 were on the stock market, some 63.5% were in the form of Global Depository Receipts (GDR), deposited at London's Bankers Trust Company. UniCredito Italiano has so far owned GDRs in the amount of 9.994% of the value of all voting shares, while Allianz has owned GDRs in the amount of 9.972% of voting shares. With the HNB's consent, UniCredito could acquire up to 90% and Allianz up to 20% of the bank's voting shares. Both UniCredito and Allianz are considered leading European companies in their respective fields of activity. Nevertheless, in considering the effects of the take-over on Croatia's banking system and the HNB's accomplishment of goals and tasks, circumstances other than the bidder's good rating had to be taken into account. This primarily concerned the market share of the Zagrebacka Banka, which is almost an exclusive owner of the Varazdinska Banka and the Prva Stambena Stedionica (First Housing Savings Bank), and together with Allianz owns the insurance company Allianz d.d. Zagreb and has been establishing a joint company for the management of voluntary pension insurance funds, as well as the fact that UniCredito already owns the majority package in the Splitska Banka, Croatia's third largest bank. Given those circumstances, the HNB and the Agency for the Protection of Market Competition assessed that the transaction could have negative effects on competition on the Croatian money market should both the Zagrebacka Banka and the Splitska Banka be owned by the same bank group. In a procedure that followed, competent HNB expert services assessed that there were no more obstacles to realising the intended take-over of the Zagrebacka Banka given that in the meantime an agreement was reached on the sale of the Splitska Banka from Split, in which UniCredito owns 62.6% shares, the State Agency for the Insurance of Bank Savings and the Rehabilitation of Banks 25%, and the remaining shares are owned by the bank itself and small shareholders. The HNB Council concurred, adopting the said decision. The HNB Council today also discussed a request by Bank Austria AG from Vienna that it be granted consent to acquire all voting shares in the Splitska Banka from Split. Bank Austria, which is part of Hypovereinsbank Munich, has been present in Croatia for five years as the majority shareholder in Bank Austria Creditanstalt Croatia Zagreb and a shareholder in Wuestenrot Stambena Stedionica Zagreb. Bank Austria is a successful financial institution with a strategy of expanding its activities in Central European countries. The HNB Council therefore saw no reason not to give its consent for the realisation of the agreed ownership change. (hina) sb rml