Piraeus Bank will finally reveal to Bank of Cyprus how it wants to proceed with a cooperation pact or submit an outright bid following a Board meeting that the Greek bank has called for 3.00pm today, after which its proposal will be officially submitted.
After several weeks of delaying tactics, Piraeus Bank knows well that any further delays in the submission of its proposal will backfire since press reports, encouraged by Piraeus officials have been engaging in outright speculation as to how and when the Greek bank will bid for Cyprus’ largest financial institution.
Informed sources however, rule out the possibility of
“The whole point and tactics likely to be used by
Piraeus Chairman Michalis Salas has let it be known that he favours a lose merger or cooperation in such a way so that the autonomy of the respective banks is not lost and the ‘Cypriotness’ of Bank of Cyprus is protected in addition to remarks that if the two would combine operations, “it would lead to tremendous cost savings.”
Bank of Cyprus officials have on the other hand stressed that they will act only in the best interests of shareholders and will agree to a deal only if it “creates substantial value for Bank of Cyprus shareholders.”
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Eliades insists on growth
Bank of Cyprus CEO Andreas Eliades insists that Cyprus’ largest financial organization will stick to its policy of expansion of activities in Greece and the new markets of Romania and Russia, stressing once again that it will not deviate from its course simply because “some people want to cooperate without making specific proposals.”
Eliades said that during the two years when his Management team took the helm of Bank of Cyprus, the share price surged from EUR 2 to current EUR 10 level, increasing the Bank’s market cap to EUR 5.5 bln.
“We have delivered more than what we promised and I can assure Bank of Cyprus stakeholders (shareholders, staff and clients) that we shall continue on our steady growth path, which among others includes expanding the Greek branch network to 190 during the next three years and expanding in Romania and Russia.”
Referring to the Board meeting held on last Wednesday, Eliades said among others, the Board also discussed the contents of the widely leaked letter from Piraeus Bank that it wants to have a meeting to discuss future cooperation.
“The Board unanimously decided that until such time that there is no specific plan on the table, there is no point in discussing so-called proposals for which I can assure that none is on the table,” said Eliades.
In an open message to stakeholders, Eliades said they should trust and know that the Management and Board will take the best possible course of action to safeguard their interests.
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Central Bank intervention
The Governor of the Central Bank Christodoulous Christodoulou meanwhile issued a statement deploring the way with which Piraeus Bank is delaying the submission of a set of proposals outlining the sphere of cooperation between the two banks as well as financial journalists for pushing for a deal, at a time when no such deal is on the table.
“I regret to note that unfortunate comments made through newspapers has created the wrong impression that Bank of Cyprus, a reputable, highly profitable with good prospects and growing bank is on the block and is offered for sale in an auction,” said the Governor.
Christodoulou sent a strong message that the Central Bank of Cyprus will not tolerate a situation or transactions against the interests of shareholders of Bank of Cyprus.
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