Cypriot exchange deciding on concurrent offers made by Marfin and Piraeus

Cypriot exchange deciding on concurrent offers made by Marfin and Piraeus

	Published : Fri, 12 Jan 2007 14:55 By : Agencies Print this Story

ATHENS (AFX) - The president of the Cypriot Stock Exchange Akis Kleanthou said they have received two intentions to submit public tender offers, the first one by Marfin Popular Bank for the Bank of Cyprus, and the second, by the Bank of Piraeus for Marfin Popular Bank.

Brokers have said that substantial legal issues have been raised by the two concurrent offers.

Because of these legal issues to be resolved by the authorities in Greece and Cyprus concerning the banks' offers, the first one targeting both Piraeus and the Bank of Cyprus, and the second one making a defensive move by targeting Marfin, trading on all stocks involved has been temporarily suspended both the Greek and Cypriot exchanges.

Late last night Piraeus Bank announced in a press release that it would bid for the Marfin Popular Bank, listed in both Athens and Nicosia, and offered 1 of its shares for every 5.7 shares of Marfin Popular Bank with a minimum acceptance of 40 pct.

Early this morning, Marfin Popular Bank said it submitted a public tender offer for Bank of Cyprus offering 1.241 of its own shares for every share of the Cypriot institution, conditional on acquiring at least 35 pct. Marfin also confirmed it intended to bid for Bank of Piraeus and sources say it will offer 2.84 of its shares for every Bank of Piraeus share.

Marfin has alleged that Piraeus was making its bid as a defensive move based on confidential information of its own intentions to launch a public offer provided out of courtesy to its CEO Mihalis Sallas. Since then, the Bank of Piraeus has issued a press release denying that claim.

Meanwhile, the Greek Capital Markets Commission appears to be waiting for a decision from Cypriot authorities before taking a firm position and deciding its course of action. In Athens the issue concerns the almost concurrent disclosure of Marfin Popular Banks decision to bid for Piraeus Bank, and vice versa.

Sources have told Euro2day that the board of the Bank of Cyprus started a meeting today to determine its course of action, regarding the public offer submitted by Marfin Popular Bank.

Source: Euro2day.gr NewsWire

skrekas@euro2day.gr

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