Raiffeisen Bank halts sale of Hungarian unit
Austria-based lender Raiffeisen Bank International (RBI) has decided not to sell its Hungarian unit for now, Reuters reported Wednesday citing sources familiar with the situation. The announcement followed media reports and speculation (including a story from local business news website Napi.hu which had Széchenyi Commercial Bank acquiring RBI’s entire Hungary-based operation for the token sum of €1) that such a deal could be imminent.
Raiffeisen, Central and Eastern Europe’s second-largest lending institution, had said in November it was reviewing offers for the loss-taking Hungary-based business as it focuses on more promising markets in the region.
Two sources informed Reuters yesterday that Raiffeisen had decided against doing a deal on the grounds that selling at a reduced price would trigger losses the bank was not prepared to accept.
-- Material from MTI was used in this article
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