Deutsche Bank's battle to gain control of Poland's fifth largest bank moved closer to victory yesterday, when the state securities commission halted its investigation of the bid.
Rzeczpospolita daily, which broke the news yesterday, called the decision a success for Deutsche Bank, which is taking steps to control BIG Bank Gdanski.
The deal will strengthen Deutsche's position in Poland, which is one of Germany's leading trading partners. But it is highly controversial, with political leaders voicing concern at increasing foreign control of local banks, which has now reached 60%.
The commission confirmed that it had halted all proceedings but did not explain why. Deutsche Bank itself refused to comment.
The controversy erupted in January, when Deutsche Bank tried to oust BIG's supervisory board in favour of a new one supporting its takeover. Management and investors protested, prompting the securities commission to investigate Deutsche Bank's conduct.
BIG's ownership is divided among Western and Polish institutions and it has been struggling to remain independent.
