Demirbank Romania under international scrutiny

Two powerful European financial groups are already carefully considering Demirbank Romania, a bank put up for sale at the end of last week by its main shareholder, Turkey-based Demirbank TAS Istanbul Group.

Sources on the banking market told Ziarul Financiar that Italian group UniCredito and the second-leading German bank HypoVereinsbank, owner of Bank Austria Creditanstalt Romania, are contemplating a takeover of Demirbank Romania.

UniCredito representatives could not be reached, while Dan Pascariu, chairman of Bank Austria Creditanstalt Romania, did not volunteer too much information.

“I know nothing at the moment. HypoVereinsbank will probably consider this possible acquisition as an opportunity to invest on the Romanian banking market, but, until we get all the necessary data, we cannot make any forecast as neither can we make any speculation in this regard,” Dan Pascariu told Ziarul Financiar.

The quoted sources say UniCredito has already performed an audit of Demirbank Romania’s operations. “There was one time when UniCredito was the only bidder for Demirbank Romania, but it looks like other banks have become interested in it, so that the Turks postponed talks with UniCredito,” the above-quoted sources said.

Two months ago, an UniCredito delegation comprised of high-ranking officials was in Bucharest to meet with the Romanian authorities. Italians at the time expressed their interest in entering the Romanian banking market.

Demirbank Istanbul was seized by the Turkish State late last year and sold to one of the leading financial groups in the world UK-based HSBC several weeks ago.

HSBC did not want to take over Demirbank’s Romanian branch, as well as four other branches of the Turkish bank from Holland, Bulgaria, Kazakhstan and Demir-Kyrzgz International Bank, though.

Virginia Otel, Demirbank Romania’s development manager, at the end of last week said that major European banks and Turkish financial groups had shown interest in the bank in Romania following the announcement about Demirbank Romania’s being put up for sale. However, she did not care to volunteer any names.

The bids for Demirbank Romania have to be submitted by August 24, with the new owner name scheduled to be released by September 3.

Demirbank TAS Istanbul holds 62.5% in Demirbank Romania. The other shareholders of the bank in Bucharest are International Finance Corporation (IFC), World Bank’s investment division – 20%, SIF Muntenia – 10%, SIF Transilvania – 4.99%, SIF Banat-Crisana – 2.35% and others – 0.16%.