BoC tell Piraeus to make the first move

THE BANK of Cyprus (BoC) yesterday passed the buck to Greece’s Piraeus Bank regarding a proposal for cooperation between the two.

Persistent reports said that a few days ago the chairman of Piraeus, Michalis Sallas, addressed a letter to the BoC board, asking them to decide on the marriage. Sallas wanted a meeting of top execs from the two banks to seal the deal.

Putting the heat on the dithering board of the Cypriot bank, Sallas had reportedly conveyed the message that Piraeus will not wait around forever.

And according to the same reports, he dropped a hint that if the BoC did not go for the deal then Piraeus would sell off all its stock – a move that would make BoC share prices tumble.
Piraeus’ stake in the BoC is worth an estimated £100 million.

Following a marathon session of the BoC’s board of directors, the bank released a statement late last night.

“The Board of Directors examined the letter of Bank of Piraeus for a meeting between the two banks as well as statements to the media by officers of Bank of Piraeus for cooperation.

“Having considered that the said letter does not refer to any particular proposal for cooperation, the Board of Directors unanimously decided that there is no reason for the proposed meeting.

“The Board of Directors reiterates its stance that it will duly examine any specific and comprehensive proposal in the interest of its shareholders as a whole as well as its staff, customers and the economy of Cyprus in general,” concluded the statement.

The uneasy relationship with Piraeus began some six months ago, when the Greek lender acquired two per cent of BoC shares, slowly increasing this to a little over eight per cent in mid-October.

As Piraeus’ stake grew, the Cypriot bank’s initial warm response cooled off, to the point where bank execs began suggesting the Greeks were out to make a hostile takeover.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.