Bank of Cyprus jumps above EUR10 on bid talk

Bank of Cyprus shares jumped above the EUR 10 level for the first time following a report that key members of the Board are meeting Friday, which among others will discuss the possibility of a bid from Piraeus Bank.

Rumours speak of an increasing number of Cypriot large shareholders sending messages to the Bank that in the event of an all-out cash bid at a good-sized premium, they will shift allegiance and back Piraeus.

The same sources, however clarified that they would not accept any takeover bid based on a share swap, considering that most investors in Cyprus view the shares of Piraeus as “over-priced and ripe for a major down correction.”

“It has to be in cash at a decent premium, otherwise we will stick with the present Management team,” said one investor with a good sized position in the Bank.