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BAWAG to divest MKB stake as condition for state aid

Austrian bank BAWAG may have to divest its stake in Hungary's MKB Bank as a condition for a €550 million capital injection by the state approved by the European Commission on Wednesday, the Austrian Press Agency reported, citing sources close to the deal who did not wish to be named.

The Commission mentioned “divestments” among the conditions BAWAG must fulfill, but provided no further details.

BAWAG holds a 9.77% stake in MKB Bank.

MKB Bank's majority shareholder is Bayerische Landesbank, holding 89.75% of the shares. (MTI-Econews)