UPDATE 1-Polish watchdog approves GE Money takeover of BPH

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WARSAW, June 6 (Reuters) - Poland's financial watchdog KNF has given the green light for General Electric's (GE.N) GE Money Bank to acquire bank BPH BPHW.WA, the watchdog's spokesman said on Friday.

The approval is the final step in a complicated transaction between GE Money and Italy's UniCredit (CRDI.MI), which controlled BPH.

UniCredit sold part of BPH and its brand name to GE as a condition of the merger of the rest of BPH with the Italian bank's other Polish unit, Pekao BAPE.WA.

"KNF has agreed for General Electric Company to acquire BPH shares that will allow it to exercise rights from more than 66 percent but less than 75 percent of votes at BPH's shareholders meeting," Lukasz Dajnowicz said.

By 1033 GMT, shares in BPH were up 3.2 percent to 76.75 zlotys, outperforming Warsaw's banking index .BNKI, which was up 0.6 percent. (Reporting by Marcin Goettig; writing by Marynia Kruk, editing by Will Waterman)