Wires

Poland favours selling stake in PKO to institutions over SPO

WARSAW, Oct 10 (Reuters) - Poland would prefer selling astake in its top lender PKO BP only to financialinstitutions, rather than through a secondary public offeringdirected at the whole market, a government official was quotedas saying on Wednesday.

The country directly and indirectly controls 43.6 percent ofthe bank but has aid in the past that it would be satisfied witha 25 percent stake.

"In the case of companies such as PKO BP, it seems moreappropriate to sell stakes directly through the market towholesale institutional investors rather than organising abroadly available public offering," Deputy Treasury MinisterPawel Tamborski said.

"Retail investors would probably expect special incentives,for example a discount against the current share price, whichwould destabilise it," he told daily Gazeta Wyborcza in aninterview.

After selling a 7 percent stake in PKO for 3.2 billionzlotys ($1.01 billion) in July, Poland has a lock-up that blocksit from selling a further stake for 180 days since the day ofthe transaction.

The Treasury, which oversees state assets, plans to raise 10billion zlotys from privatisations in 2012 and add a further 5billion in 2013. This year's privatisation receipts currentlyexceed 8 billion zlotys.($1 = 3.1639 Polish zlotys)

(Reporting by Maciej Onoszko; Editing by David Cowell)

((maciej.onoszko@thomsonreuters.com)(+48 22 653 97 11)(ReutersMessaging: maciej.onoszko.reuters.com@thomsonreuters.net))

Keywords: POLAND PKO/