Attica Bank said to have rejected notable offers

By Yiannis Papadoyiannis

Attica Bank has turned down buyout proposals from strong institutional portfolios and investors in recent months, setting the maintenance of the present share and administrative structure of the Greek lender as a condition.

Sources have told Kathimerini that well-known and reliable investment entities have expressed an interest in the non-systemic bank, which is using Eurobank’s privatization as a model of reference. However, the management’s refusal to consider any major changes to the bank’s structure have spelt an end to those contacts.

Attica sources appear optimistic about the bank’s recapitalization and estimate that the preferred bidder will be selected soon. They also express certainty that the agreement will be favorable for the bank’s present stakeholders.

Nevertheless, other sources argue that even if Attica’s management reaches some sort of a deal, it is particularly doubtful that it will be approved by the Bank of Greece, owing to the low quality of the interested investors – hedge funds. As a rule, the entry of aggressive hedge funds – known for their short-term profit horizons – is avoided in banks’ share capital.