Marfin Popular drops bid for Bank of Cyprus

…EUR300-400 mln income from MIG forecast for MPB

 

Marfin Popular Bank CEO Andreas Vgenopoulos has said the Bank’s 8.19% investment in Bank of Cyprus is no longer considered a strategic stake and is now being viewed as “flexible” indicating that the MPB is no longer seeking a cooperation leading to a merger.

Speaking at a teleconference with analysts, Vgenopoulos expressed his surprise at the massive 62% vote of support expressed by shareholders, including institutional, supporting the Bank of Cyprus management and opposed to any sort of deal with Marfin Popular Bank.

“We were led to understand that shareholders wished for a cash offer to enhance the maximum they could get,” said Vgenopoulos adding that following such a high percentage opposing the deal and in view of the negative stance taken by BOC Management, “the Bank of Cyprus stake is no longer considered as strategic.”

He was also critical how the Cypriot regulatory authorities had reacted quickly in blocking his attempts leading to a cooperation.

“Our offer made previously to Bank of Cyprus was over-generous. They will regret for opposing our efforts,” said Vgenopoulos.

He said that MPB has no problem in considering offers for its 8.2% stake in BOC after the Bank sold 1.5 mln shares in BOC shares in the open market. “It all depends on the price. We may be buyers or sellers.”

 

MIG success

Referring to the success with which Marfin Investment Group (MIG) raised its target of EUR 5.19 bln in new capital, Vgenopoulos said this is very significant for Marfin Popular Bank, which stands to get 1% advisory fees.

“I forecast MPB earning EUR 300-400 mln from MIG fees,” Vgenopoulos told analysts.

He said it will be 1% of book value. The contract is one year and may be renewed.

For this year the fee income for MPB will be EUR 54 mln and it cannot be lower than that, based on the book value of MIG.