Foreign interest in BOC?

Bank of Cyprus shares are expected to remain well-bid amid reports that new suitors have been attracted to the stock following the recent takeover interest for the bank.

During heavy trading on the CSE and the ATHEX, the Bank of Cyprus share price remained well bid and swiftly recovered from levels close to EUR 11.00 per share.

Reliable sources told the Financial Mirror that a Russian oligarch with intensive operations in the Ukraine and banking interests in Latvia, a Baltic country and an EU member, has hired a reputable foreign investment bank to give an opinion on whether a bid on Bank of Cyprus is feasible or not.

The same sources suggest that many foreign analysts consider Bank of Cyprus as an ideal opportunity to gain a foothold in at least three EU markets, with the prospects of new expansion in east Europe and Russia.

The investment briefing that Piraeus Bank will hold at 19.15 today at the Athens stock exchange building on Sophocleous Str. to give explanations regarding recent developments is eagerly awaited, as analysts will want to know the number of bids that the bank has received on its 8.15% stake in Bank of Cyprus, which the bank has expressed interest to sell.

Analysts note that for a new suitor to gain a foothold in Bank of Cyprus, the best way would be to bid for the 8.15% stake offered for sale by Piraeus and then increase its stake to 9.99%, the level below which no regulatory permission is required from the Central Bank of Cyprus.

“They could wait for a while until the European Mergers and Acquisitions Directive is passed and Cyprus M&A laws become fully compatible with EU rules after which they can submit a bid and raise their participation,” said an M&A expert, explaining how outsiders would probably establish a presence.

 

— SEC rules against Marfin, imposes CYP10,000 fine

 

The Cyprus Securities and Exchange Commission has ruled that the public offer document submitted by Piraeus Bank seeking control of Marfin Popular Bank is valid and has called on Marfin to stop all attempts to promote its public tender bids seeking control of Bank of Cyprus and Piraeus Bank.

The SEC ruled that Marfin acted in clear violation of Cyprus M&A rules but because it views that the actions of Marfin were not in bad faith, it imposed a fine of CYP 10.000 or EUR 17.000 on Marfin, which is now supposed to recall its takeover process and await the outcome of the Piraeus bid. After that it will be able to submit a new bid.

 

— Marfin Popular revises profit target lower for 2007

 

Marfin Popular Bank has revised lower its profit target for 2007 but adjusted higher the profit targets for 2008 and 2009.

During a conference call held with analysts, Marfin CEO Andreas Vgenopoulos is reported to have said that the profits of the Marfin Group for 2007 will be lower than previously forecast in September, due to delays in the merger between Laiki, Marfin Financial Group and Egnatia Bank.

Vgenopoulos told analysts that the 2007 profits will amount to EUR 360 mln and not EUR 370 mln as previously forecast, while the profits for 2008 and 2009 have been adjusted higher.

For 2008, the Marfin group expects EUR 470 mln in profits from its earlier forecast of EUR 440 mln, while for 2009, the forecasted profits amount to EUR 600 mln compared to EUR 510 mln previously forecast.