Eurobank to get GE's 8.75%

Greek bank EFG Eurobank will not stop at holding a 53.25% stake in Banc Post, as it has pre-emption rights for buying the 8.75% in the Romanian bank currently held by General Electric Capital Corporation. The acquisition will enable Eurobank to hold 62% in Banc Post, according to the information provided by the bank. The Portuguese bank Banco Portugues de Investimento on Monday night announced it had sold its 17% in Banc Post to Greek Eurobank Group for 23 million euros. “This takeover proves Eurobank’s involvement on the Romanian market and its commitment to the development of Banc Post. This new stake increase will allow Eurobank to speed up Banc Post’s restructuring, a process that is already ongoing,” Elena Petculescu, Banc Post chairperson comments. BPI bought into Banc Post as early as 1998, when it joined General Electric Capital Corporation (GECC) in the consortium, which bought 45% in Banc Post from the State Ownership Fund (SOF). GECC decided to decrease its stake from 35% to 8.75% in 2000, so that Banco Portugues de Investimento bought another 7% and came to hold 17%. The Greeks at Eurobank have invested nearly $60 million in Romania so far in acquiring the controlling interests in Banc Post alone. ZF