Any bridge that could restore the administrations of the National and Alpha Bank close to a
deal, was cut yesterday by a letter to the staff of Alpha, which is signed by Yiannis Kostopoulos, where he invoked once again the unpredictability of the current circumstance as the main criterion that gave the negative response to a friendly takeover proposal from NBG.
New proposal on the part of NBG had been excluded from Sunday, although a tender offer would cause the administration of Alpha Bank to convene an emergency general meeting of shareholders in order to put the proposal into consideration.
The categorical refusal of the Kostopoulos-Matzounis administration disappointed many in the banking and stock market, satisfied the union and opened a new round of scenarios for future developments in the banking industry.
NBG says they’re surprised by Alpha’s refusal, foreign analysts and the international finance press was set in favor of the merger, from the Greek market the president of Piraeus Bank with a statement in reuters estimates that such a merger would be profitable for the banking industry. 'I think if they agree it will be a positive development for the economy in general and the banking sector in Greece' he said.
Contacts with executives
Kostopoulos has programmed a meeting of executives today in order to explain to them the reasons that made his decisions, in an attempt to improve the moral of the staff and the climate in Alpha due to the fact that it was found in the place of the target and not the arrow that would fit more to the formed idea of the mighty organization that chooses and does not get chosen.
Although on Sunday night, a member of Alpha insisted that the only main difference id the price, other sources talk of different views and disagreements between board mwmbers.
Specifically, Kostopoulos seems to have agreed to the new bank, as he would have been head of one of the largest banking organizations in SE Europe. CEO Mantzounis seems to have had a different opinion wanting to secure many execs under him.
But this difference in high level would have occurred in a lower level too as members of other banks spoke of a necessary slaughter that would have meant the firing of at least 3.000 people.
The alternative scenarios
Many however, explain the refusal from Kostopoulos-Mantzounis as serious evidence of an alternative course. Scenarios are coming and going.
Some think that Alpha is returning to negotiations with Eurobank of the Latsis group, which have stuck to the strong share position that the group would have occupied, something that frightens the powerful yet with minor share stake, Kostopoulos and Matzounis. Which is logical if one considers the experience from the absorption of the Labour Bank by Eurobank.
Another scenario is talking of a cooperation possibility with a large foreign bank. The past talks with BNP Paribas and other big banks are known. This scenario is strengthened from the repeat of the statements about insecurity in Greece that transfers directly to the dangers of NBG in case of a haircut due to the large quantity of bonds it possesses.
The third way is that of the raise of the capital and the autonomous – for now at least – course of Alpha. But this course will not be easy especially in case the ECB sets as it all shows an issue of detachment of Greek banks from it, which for more than a year now is the only source of liquidity for the banking system.
But while the merger was sinking completely and despite the attempts of the government, foreign investors and the BoG, for the two sides to reach an agreement, the Finance vice minister and experienced in banking issues, D. Kouselas, states that the system above all must try to deal with the situation. Give the possibility of increased liquidity for market needs and meanwhile support the attempts for development of the country and its exit from the recession.
“Some things are insurmountable taboos”
After the latest developments everybody is looking for the reasons that Alpha denied triumphantly the objectively good proposal of NBG. Maybe the explanation is simpler than what most people think and could be found in the opinion of LAOS representative K. Aivaliotis who said yesterday that 'in life there are some insurmountable taboos. The banking system could not be an exemption. Kostopoulos having spent his lifetime in Alpha Bank cannot leave it now and watch it from afar'.
Everyone in their own way are preparing for the next day because as a powerful banking agent says 'the lid is up' and it is certain new things will pop out. Possibly sooner than we all thought.
deal, was cut yesterday by a letter to the staff of Alpha, which is signed by Yiannis Kostopoulos, where he invoked once again the unpredictability of the current circumstance as the main criterion that gave the negative response to a friendly takeover proposal from NBG.
New proposal on the part of NBG had been excluded from Sunday, although a tender offer would cause the administration of Alpha Bank to convene an emergency general meeting of shareholders in order to put the proposal into consideration.
The categorical refusal of the Kostopoulos-Matzounis administration disappointed many in the banking and stock market, satisfied the union and opened a new round of scenarios for future developments in the banking industry.
NBG says they’re surprised by Alpha’s refusal, foreign analysts and the international finance press was set in favor of the merger, from the Greek market the president of Piraeus Bank with a statement in reuters estimates that such a merger would be profitable for the banking industry. 'I think if they agree it will be a positive development for the economy in general and the banking sector in Greece' he said.
Contacts with executives
Kostopoulos has programmed a meeting of executives today in order to explain to them the reasons that made his decisions, in an attempt to improve the moral of the staff and the climate in Alpha due to the fact that it was found in the place of the target and not the arrow that would fit more to the formed idea of the mighty organization that chooses and does not get chosen.
Although on Sunday night, a member of Alpha insisted that the only main difference id the price, other sources talk of different views and disagreements between board mwmbers.
Specifically, Kostopoulos seems to have agreed to the new bank, as he would have been head of one of the largest banking organizations in SE Europe. CEO Mantzounis seems to have had a different opinion wanting to secure many execs under him.
But this difference in high level would have occurred in a lower level too as members of other banks spoke of a necessary slaughter that would have meant the firing of at least 3.000 people.
The alternative scenarios
Many however, explain the refusal from Kostopoulos-Mantzounis as serious evidence of an alternative course. Scenarios are coming and going.
Some think that Alpha is returning to negotiations with Eurobank of the Latsis group, which have stuck to the strong share position that the group would have occupied, something that frightens the powerful yet with minor share stake, Kostopoulos and Matzounis. Which is logical if one considers the experience from the absorption of the Labour Bank by Eurobank.
Another scenario is talking of a cooperation possibility with a large foreign bank. The past talks with BNP Paribas and other big banks are known. This scenario is strengthened from the repeat of the statements about insecurity in Greece that transfers directly to the dangers of NBG in case of a haircut due to the large quantity of bonds it possesses.
The third way is that of the raise of the capital and the autonomous – for now at least – course of Alpha. But this course will not be easy especially in case the ECB sets as it all shows an issue of detachment of Greek banks from it, which for more than a year now is the only source of liquidity for the banking system.
But while the merger was sinking completely and despite the attempts of the government, foreign investors and the BoG, for the two sides to reach an agreement, the Finance vice minister and experienced in banking issues, D. Kouselas, states that the system above all must try to deal with the situation. Give the possibility of increased liquidity for market needs and meanwhile support the attempts for development of the country and its exit from the recession.
“Some things are insurmountable taboos”
After the latest developments everybody is looking for the reasons that Alpha denied triumphantly the objectively good proposal of NBG. Maybe the explanation is simpler than what most people think and could be found in the opinion of LAOS representative K. Aivaliotis who said yesterday that 'in life there are some insurmountable taboos. The banking system could not be an exemption. Kostopoulos having spent his lifetime in Alpha Bank cannot leave it now and watch it from afar'.
Everyone in their own way are preparing for the next day because as a powerful banking agent says 'the lid is up' and it is certain new things will pop out. Possibly sooner than we all thought.
by Dimitris Pafilas
source: PROTO THEMA
