Marfin, Laiki, Egnatia may decide on new name

The triple merger planned by Marfin Bank, Laiki Hellas and Egnatia in Greece may ultimately decide to adopt a new name, but the final decision will be made following extensive research and marketing plans, said Marfin Vice-Chairman and CEO Andreas Vgenopoulos.

The due diligence reports are currently being prepared by KMPG and Grant Thornton, while the final valuations will be made by Credit Suisse, Deutsche Bank and Merrill Lynch.

The process is expected to be finalised by the end of 2006, while the final decisions will be taken by the shareholders of the respective banks during AGM’s that will be called in the first quarter of 2007.

Vgenopoulos told the Financial Mirror that the actual merger valuations will not be decided by accountants, but their involvement is needed to start from a common base.

He admitted that Marfin, which controls close to 40% of Egnatia and is keen on lifting its stake in Laiki Group to 19.9%, which in turn owns 80% of Laiki Hellas will ultimately have majority control of the new bank, the name of which has not yet been decided.

Pressed to explain if Laiki shareholders should agree to such a merger if the valuation was not deemed satisfactory, Vgenopoulos replied with a question of his own, “ are Laiki shareholders happy at the fact that the return on equity of Laiki Hellas last year was only 3.2%?”

“How fast do Laiki shareholders think their bank (Laiki Hellas) will increase its ROE on its own to reach the Greek average and how fast do they think the ROE will rise in a stronger entity now in the making.”

“That is the question that should be asked” said Vgenopoulos adding that the media should not rely on the comments and leaks by top managers fearing job losses, but instead talk to Laiki shareholders.

“If they are happy, and I can assure you that Laiki shareholders are extremely happy at the way we are handling things judging from the hundreds of letters, faxes and telephone calls received, then its only a matter of time before we start delivering the promised results,” said a confident Vgenopoulos.