UNION GROUP PICKS BNP PARIBAS AS PREFERRED PARENT

Czech financial services company Union Group has granted France-based bank BNP Paribas exclusivity in talks to take a controlling stake in the Czech Republic-based group. Spokesman Josef Rericha said Union picked BNP Paribas over Austria’s Raifeisenbank on the advice of Deutsche Bank. The group, which owns Union Banka, local insurer Union Pojistovna, Polish bank Przemyslowy and local pension fund Vojensky Otevreny Penzijni Fond, had assets of CKr35.5bn at the end of last year, but recorded losses of CKr46m. Czech newspapers reported that BNP had demanded a state bailout for Union Banka, although government officials have said that they have received no such request.