Poland’s state-owned insurer PZU has reportedly submitted an offer to purchase Raiffeisen Polbank, the Polish banking arm of the Austrian lender.
Reuters quoted a source saying: "They’ve submitted an offer, talks are ongoing, there is no crowd (of investors interested)."
The move follows PZU’s announcement to buy 25% interest in Alior Bank with plans to buy three banks in 2015 to create its own banking group.
Raiffeisen Bank International is looking sell its Polish unit to help shrink its balance sheet and attain a core capital ratio of 12% by the end of 2017.
A source told Reuters: "The Austrians are ready to accept the price of just one times a book value."
The book value of Raiffeisen Polbank, the seventh largest bank by assets in Poland, amounts to PLN6bn ($1.6bn).