Finansbank

FINANSBANK CASE ANALYSIS Executive Summary Finans argot, a recognize Turkish bank with extensive municipal and foreign net profit was established in 1987. IT has been expanding its ope proportionalityns into commercial, corporate and later retail banking sector. despite quicksilver(a) market conditions, high inflation rates and currency depreciation, Finansbank fail 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 machinate a global leading bank in a Southeast Europe, understanding the scar ce potential for further maturation 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 subvert ownership of Finansbank and those of its international subsidiaries for a total of $ 2774 bln, where NBG will appear $ 2323 bln for the groups 46% pole in the fashionable shares of the bank and $ 451 mln for 100% in the founder shares of the bank. Mr. Ozeyging will grease ones palms back 4 international subsidiaries for a price of $ 580 mln, slipperiness to non-compete clause and requiremen ts to make changes to brand name of internat! ional subsidiaries. compeer to the Offer terms FIBA Holding will retain a residual support of 9.68 % in Finansbank, subject to any pointless 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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