Following a tentative dividend agreement in May, the seemingly interminable wrangling between Dutch insurance firm Eureko and Poland over domestic insurance colossus PZU looked like it might finally come to an end. But it was not to be.

At a general shareholders meeting resumed on July 29 after a month’s postponement, PZU shareholders decided against paying out a dividend which was expected to eclipse the firm's zł.2.3 billion net profit.

Nevertheless, the Treasury appeared undeterred by the dividend decision, noting on its website that, “Negotiations in the matter of solving the conflict over PZU are advanced and moving towards a settlement.”
“The parties stipulate the end of September as the final and irreversible date of the end of negotiations,” the Treasury said in its statement.

The dispute between Poland and Eureko dates back to 1999, when the privatization of PZU began. Eureko claims that in the intervening years the Polish government reneged on an agreement to sell a controlling stake in the Polish insurer and the Dutch firm is seeking billions of dollars in damages from an international arbitration court.

The Treasury currently holds around 55 percent of PZU and Eureko has 32.12 percent, with the remainder of the firm in the hands of minority shareholders. (Reuters)