Emporiki’s privatization process in the spotlight

Credit Agricole has become the only suitor left seeking control of Emporiki Bank of Greece after no other bids were submitted by the deadline of yesterday, a process which casts serious doubt on the chances of success for the Greek government’s privatization programme.

Credit Agricole, which has offered 23.5 euros per EMP share, is not seen increasing its offer price. A high level meeting between the CEO of the Group and the Greek Finance Minister George Alogoskoufis has been scheduled for today, after the close of business on the ASE.

Greek press reports suggest that there is a serious risk that the Greek Finance Minister decides to postpone or stall the privatization process pending a better offer by Credit Agricole or other suitors, but most observers see Alogoskoufis and the government in general coming under criticism ahead of the October elections.

CA however, may improve slightly its offer to secure a successful outcome. CA needs to accumulate at least 40% of the capital of EMP (including its current 8.9% stake) for its offer to be valid. The government’s privatization committee holds a meeting on the Emporiki issue this week, while July 31 is the deadline for Credit Agricole to submit an improved offer.