BOC stays out of Laiki dispute

Bank of Cyprus has decided not to submit proxies for its stake in Laiki Bank ahead of the EGM to be held on October 24, effectively distancing itself from the 50-70 disgruntled shareholders of Laiki who want to block the proposed merger.

The presence of BOC Board member Evdokimos Xenophontos at last Friday’s meeting held by the 50-70 disgruntled shareholders was seen by some as an indirect involvement of BOC in the affairs of its main competitor.

The BOC Management however decided not to appoint a representative to represent its holdings, which is seen as an attempt to mend fences with the Management of Laiki, which viewed the presence of Xenopoulos as a “hostile act” which would be countered.

The BOC Management has thus distanced itself from the group of opposers, who as is obvious, the majority are pushing personal interests ahead of the interests of the wider Laiki shareholders.

One is accused of blackmail, the other of attempting to write-off his debts, the other for not getting compensation and the others for not even bothering to ask who paid for last Friday’s meeting at the Hilton, who paid for the advertisements in the press and who is financing the whole campaign to torpedo the deal.

Until recently, Eurolife held 8.06 mln Laiki shares for a 2.25% stake, BOC Pcl 2.25 mln shares or a 0.62% stake, Cytrustees 2.17 mln shares for a 0.61% stake and BOC staff provident fund 355.000 Laiki shares for a 0.09% stake. The total holding was estimated at 12.84 mln shares or 3.58%.

Laiki Bank sources however dismissed the significance of the BOC stake on the basis that in recent days, the group has been heavily selling its stake in the Bank and the combined stake is reported to be under 2%.