Cerberus May Sell Bawag

Businessn.a. ♦ Published: May 12, 2012; 19:04 ♦ (Vindobona)

Five years ago, the U.S. investment fund Cerberus acquired the financially stricken Austrian Bawag bank. Next week, the retention period expires.

Cerberus May Sell Bawag / Picture: © BAWAG

After major losses in 2005, Bawag was factually bankrupt. The former bank of the Austrian association of trade unions (ÖGB) was then sold to the U.S. investment fund Cerberus. At that time, Ewald Nowotny was chief executive officer of Bawag. Now, Nowotny is governor of the Austrian Central Bank (OeNB).

In December 2006, Cerberus was awarded as buyer. The closing took place in…