CA improves Emporiki bid to 25 euros

Credit Agricole, the French banking giant has improved its takeover bid offer price seeking minimum 40% control of Emporiki Bank of Greece to 25 euros per share from 23.5 euros previously. The other terms of the CA bid remain the same as stated in its prospectus.

The new improved offer values the CA bid at EUR 3.3 bln from EUR 3.1 bln previously and comes at a crucial time for the Greek government, which risked seeing its ambitious privatization program collapse if the EMP deal did not proceed.

Shareholders of Emporiki now have until August 7 to accept the offer, which is still subject to approval by the Greek Capital Markets Commission. Following a high level meeting between the Greek Finance Minister and the CEO of Credit Agricole in Athens, the Greek Minister Georgos Alogoskoufis said CA’s improved bid is a sign of confidence in the prospects of the Greek economy and the Greek banking system as well as that of Emporiki Bank.

The Greek government has set up a Ministerial Committee in charge of privatizations, which will study the new improved offer by CA and then issue its position. The Committee is expected to meet next week to decide on the sale of 11% of Emporiki stake held by the Greek state through DEKA. Once the decision, expected to be favourable is made, then this will most likely give the green-light for other state-owned funds and small shareholders to follow.