Contact:
Mag. My Hue McGowran
Phone: +43-1-81140-308
E-Mail: mcgowran@newsfox.com
| Pressbox | 
|
London (pte035/27.05.2005/16:50) - The possible merger of Unicredito Italiano http://www.unicredit.it and the HVB Group of Germany http://www.hvbgroup.com could be one of Europe's first major cross-border unities between banks. The deal could be worth about 16 billion euros.
Negotiations are said to be in the advanced stages, but have not yet been finalised. An announcement is possible next week.
United, the HVB, a commercial and retail bank, and Unicredito, the bank that capitalises Italy's market, would be a powerful presence in the central and eastern countries that are joining the EU - in which there has been a high demand for credit cards and home loans, an area in which many banks make their money.
Unicredito now owns local banks in Bulgaria, Croatia, the Czech Republic, Poland, Slovakia, Romania and Turkey. HVB, having expanded its network in Bosnia, Lithuania, Romania and Ukraine, has bought local banks in Bulgaria and Serbia.
Cross-border banking has not been successful in the united Europe, despite experts' predictions made when the euro became the common currency. Culture clashes and political pressure have come between countries and making major financial deals.
Last year chief executive of HVB Dieter Rampl said: "European consolidation is moving forward, but we have to concentrate on growth by drawing on our own strength."
Based on the speculation of the merger, HVB's stock rose by more than 5 per cent on the Frankfurt exchange.
(end)
|
|
