Poles Apart on PZU (A)
Posted: 9 Apr 2012
Date Written: February 24, 2012
In October 2008, Andrzej Klesyk, CEO of Poland's largest insurer PZU, reflected on possible ways of resolving a decade-long cross-border shareholder conflict at his company. Owned 55% by the Polish State Treasury and 33% by the Dutch insurer Eureko as of October 2008, PZU was a highly profitable company and Poland's biggest asset holder. Eureko aimed at majority ownership of PZU as the building block of its Eastern European expansion strategy. The Treasury, however, was reluctant to forfeit control of the country's crown jewels. Several rounds of negotiations and international arbitration failed to resolve the conflict, leading to a progressive breach of trust. Was there anything Klesyk could do to break this international and multilateral stalemate?
Learning Objective: To discuss different approaches to dispute resolution, and the role of relationship and trust in negotiation. To identify the interests of each party involved in the conflict, and how issues of mistrust and negative emotions can derail potential solutions to conflicts and the use of an interests-based approach to dispute resolution.
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