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GIRO tender unsuccessful, MNB puts off decision on sale

The National Bank of Hungary (MNB) on Thursday said it decided to review the possible sale of its stake in interbank clearing house GIRO at a later time after declaring a second tender for the shares without result.

Just one offer was submitted in the tender and it was too low, the central bank said.

The MNB said it could put the sale of the stake back on the agenda at a later time, when investor interest is bigger and market conditions improve.

MNB announced the tender for its 7.3% stake in GIRO on March 16. It offered its 182 shares in GIRO for sale in four share packets. Two of the packets each consist of 46 shares and the other two contain 45 shares apiece. The deadline for bidding for the packets was April 13.

The MNB invited bids for its GIRO shares in a single packet in November 2010 with a submission deadline of December 14, but the tender was declared unsuccessful on January 7. A single bid was made for the packet but it was under the MNB's expectations, prompting the decision to offer the shares in four separate packets, the bank said.

GIRO was established by 11 credit institutions and the MNB in December 1988. At present, the company has 27 shareholders.