Bank of Cyprus chiefs put up defenses, “no deal” with Marfin

Bank of Cyprus chief executive Andreas Eliades went on the defensive Monday saying that he saw no prospects of cooperation whatsoever with Marfin Popular that took control of a strategic 8.07% stake from Piraeus Bank to become the largest shareholder in the Cypriot bank.

Eliades said that any further actions on Bank of Cyprus would spell disaster for the island’s economy.

He said that the bank’s main defense was its widespread shareholder base that would not allow any hostile action from any outside investor, adding that he expects foreign institutional funds to defend the stock.

Marfin Popular’s chief executive, Andreas Vgenopoulos, has hinted at seeking a greater stake in BOCY, while not excluding any potential merger or takeover, especially now that Marfin Popoular has been endowed with a EUR 5 bln arsenal for potential purchases.

However, banking industry experts argue that any views that Marfin Popular would have in taking a bigger control in BOCY would fail as the competition commissioner would block such a move.

“Whose interest would Marfin Popular be looking after – it’s 8% or the remaining 92% of BOCY shareholders,” asked Eliades.

He told a press briefing that even in the hypothetical case of Marfin Popular seeking a seat on the BOCY board or demanding to be heard at the Bank of Cyprus shareholders’ meeting, this would cause innumerable problems that even Marfin Popular does not want.

“I still have not understood what their true intentions are,” he said, adding that there was nothing complementary between BOCY’s and Marfin Popular’s businesses, while there were better prospects of cooperation if any deal with Piraeus Bank went ahead.