Bank Leumi in talks for Eurom Bank

Bank Leumi, Israel”s second largest bank, is in negotiations to acquire control of one of the smaller banks on the Romanian market, Eurom Bank, the Israeli daily Maariv reported on Wednesday.

The report says Bank Leumi is planning to buy Eurom for around 80 million dollars (63.5 million euros).

Leumi is currently engaged in an ongoing international process of expansion and is looking for new acquisitions. Some months ago it acquired Riggs Bank & Trust Co through its UK subsidiary for 25 million dollars (19m euros). Eurom is held by Kolal BV, a company registered in the Netherlands and controlled by businessman Fredi Robinson. Kolal owns nearly 90% in the bank. Representatives of the majority shareholder could not be reached for comment on the news of the talks for the sale of the bank. However, Eurom”s main minority shareholder, the National Union Bloc (BNS), confirmed talks were being held concerning the sale of Eurom. “Talks are underway for the sale of the bank, and we”re talking about one of the top 50 banks in the world, which has a presence in a number of countries,” said Dumitru Costin, BNS chairman, without providing any further details. Leumi Bank, however, is not one of the world”s top 50. BNS owns 4% in Eurom. Eurom”s management has said it was unaware of any talks between the majority shareholder and the Israeli bank. “The bank has no knowledge of this action, which would normally entail going through several stages, and the bank”s management has no information as to this decision having been taken by the shareholders,” Eurom Bank representatives told Ziarul Financiar on Wednesday. Eurom had total assets worth 125 million euros at the end of the first quarter this year, earning it a 0.5% market share. Bank representatives did say, however, that several investors had expressed an interest in a takeover of the bank over the past two years. vlad.nicolaescu@zf.ro