Agony and fermentation to warm up the deal again

An unprecedented barrage of fermentation is under way in order to rewarm the potentials of the NBG and Alpha Bank merger after the shock of the “no” by the board of the later to the bigest bank in the country.

Protothema.gr is in a position to know that on Saturday, contacts were developed with high ranking officials of the Finance ministry with executives of the two banks, as well as talks between the later.

The governmental agony – especially of minister Papakonstantinou who rushed to greet the prospect of  agreement giving a message to the markets that the deal is actually closed – is evident, especially after the massive investments of investors in the ADR (certificate) of NBG in Wall Street, at its meeting on Friday.

The relevant information wants Citigroup and JP Morgan banks, which have significant ownership presence in both banks to have actually suggested that the deal, since the talks were disclosed, should proceed.

“Destruction is coming unless...”

“The consequences not only for equities but also for bonds will be disastrous”, a competent manager said in protothema gr., adding that the impact on climate around the Greek economy, at a highly critical moment, will be phenomenal.

It is certain that administration of NBG is on pressure to improve her proposal to the extent that the presence of shareholders in the new single figure must be at least 65% of NBG and 35% of A.B., compared with 71% and 29% respectively, which was the NBG proposal rejected by A.B's board.

Just as certain is also that the Finance ministry in a case of negative development would expect to maintain a climate of consolidation in the domestic banking sector focusing on another proposal, either Greek or of a foreign bank shape.  

The time is not the Greek economy's side...

Sources of the market can not exclude the possibility of an intervention by Eurobank to the whole issue, given that the size of the bank owned by the Latsis Group is similar in many categories to that of Alpha Bank.

However it is clear that such a development would take up time that would count negatively for the Greek market, given the climate that has been created.

An executive of NBG stresses at protothema.gr that the proposal that has already been set is “unprecedented” in the history of mergers of banks in Greece, since it allows the shareholders of A.B. to increase by approximately 50% of the value of their investment. He does not exclude the possibility of a new proposal, stresses however that it is impossible for NBG shareholders to be harmed because A.B. is not satisfied with such a tempting proposal...

And it is understood, especially under the weight of the circumstances, A.B. Is open to a new proposal with terms that will be judged as profitable for its shareholders.

Finally, we must add that according to press information, the issue is closely watched by Qatar which already has ownership presence in A.B., while in the past has ineffectively discussed the possibility of acquiring a significant share package of NBG.