Piraeus Bank awaits BOC reshuffle

Piraeus Bank, which holds 8.2% of the capital of Bank of Cyprus is waiting for BOC’s Board reshuffle following the recent resignations and the appointment of a new Chairman before making a decision on its holding.

Piraeus is seen having accumulated the 8.2% stake in BOC, or 44 mln shares at an average cost close to EUR 7 per share (includes previously acquired shares through other names at much lower levels). The BOC shares last closed on the ATHEX at EUR 8.40.

Analysts do not expect a quick move, with a decision not expected before the first quarter of 2007 or even by May 2007 when the BOC usually holds its AGM. EFG Eurobank estimates that the profit on the BOC stake may add up to 11% to Piraeus Bank EPS in 2007, assuming that the recent rally continues.