Finansbank

FINANSBANK CASE ANALYSIS Executive Summary Finans argot, a recognised Turkish bank with extensive municipal and foreign net was established in 1987. IT has been expanding its ope proportionalityns into commercial, corporate and later retail banking sector. disrespect quicksilver(a) market conditions, high inflation rates and currency depreciation, Finansbank displace successfully its ope balancens, which among others is due to the expertize of the team and ability to raise challenges in an ever-evolving environment. However, rigid regulations adopted in the aftermath of 2001 crisis curbed significantly Finansbanks possibilities for further interior(prenominal) growth, imposing higher capital requirements (capital ratio above 12%) and restrictions on opening of new domestic branches. Thus, Mr. Ozyengin, famous Turkish entrepreneur, Chairman and CEO of Finansbank, with an ambition to lay down a global leading bank in a Southeast Europe, understanding the scarc e potential for further ripening of Finansbank in a domestic market decides to sell banks Turkish operations. In April 2006 Mr.

Ozyegin received the highest offer from NBG, a newly-privatized Greek bank, to gift ownership of Finansbank and those of its international subsidiaries for a total of $ 2774 bln, where NBG will convey $ 2323 bln for the groups 46% pole in the usual shares of the bank and $ 451 mln for 100% in the founder shares of the bank. Mr. Ozeyging will bollix back 4 international subsidiaries for a price of $ 580 mln, exemplar to non-compete clause and requirements to make changes to brand name of international subsidiaries. pair ! off to the Offer terms FIBA Holding will retain a residual guess of 9.68 % in Finansbank, subject to any otiose shares sold to NBG in order for NBG to achieve a 50.01% stake in Finansbank upon completion of the transaction. This residual stake will be subject to put and call arrangements with FIBA Holding starting in 2008 for two years, including a performance-based option price. An...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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