December 19, 2013 / 7:51 AM / 4 years ago

BNP Paribas' Polish business halts preparation for share issue

WARSAW, Dec 19 (Reuters) - The Polish unit of French bank BNP Paribas has suspended preparation for as share issue due to the French bank’s plan to take over BGZ , the Polish business of its Dutch rival Rabobank , BNP said late on Wednesday.

BNP Paribas Polska was obliged to issue shares to meet the Polish financial regulator’s (KNF) requirement to raise its free float to 15 percent.

But earlier this month France’s BNP Paribas announced plans to buy BGZ, Poland’s No.11 bank in terms of assets, in a deal that still needs approval from the local regulator.

“The bank will not be able to attain the increase of the free float of the bank’s shares to 15 percent by the previously planned deadline, which is the end of 2013,” BNP Paribas Polska said in a statement.

It had already refrained from raising capital before due to unfavourable market conditions. (Reporting by Agnieszka Barteczko. Editing by Jane Merriman)

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