Erste Group Wins Lawsuit in Sweden

Published: April 21, 2011; 15:58 · (Vindobona)

In a legal dispute over shares in a Swedish bank worth € 225m, the position of the Austrian Erste Group was able to prevail.

Erste Group Wins Lawsuit in Sweden / Picture: © Erste Group / Helmut Lackner

In 2007, the Erste Group granted a credit to the Swedish Savings Bank Foundation, which could not be served as a result of the financial crisis in 2008. Swedbank shares were deposited as collateral for the loan: the value of the 4% stake in the bank amounts to € 225m.

When the Erste Group acquired the shares in early 2009, the figure was still well below today's value. The foundation sued the First Group, describing the constitution of the collateral as legally flawed and wanted to force the return of the shares.

The Erste Group has by now sold more than three-quarters of the shares in Swedbank. They consider that there is no obligation to return the shares at the value of that time. The litigation will have no impact on earnings, according to sources from the Erste Group.