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Hypo Group Plans to Sell Austrian and Italian Subsidiary

Published: October 25, 2011; 19:39 · (Vindobona)

The nationalized bank continues its downsizing program. Major parts shall be privatized again now.

Hypo Group Plans to Sell Austrian and Italian Subsidiary / Picture: © Hypo Alpe-Adria-Bank International AG

Hypo Group´s CEO Gottwald Kranebitter emphasizes the bank´s plans to privatize substantial parts. So, the Austrian and the Italian subsidiaries should be sold. The plans for this major step already existed before, but the market situation did not allow a sale yet. Now, the bank starts a new try to downsize itself.

Hypo Group´s executive board decided to restructure the concerned subsidiaries in order to make them ready for a sale. Both regional banks shall focus on their core business furthermore. Hypo Group´s management wants to avoid any further potential risks – the bank still suffers from a large NPL portfolio in Slovenia and Croatia.

“We decided to structure the Austrian and the Italian subsidiary in order to guarantee an efficient sale process, as soon as a sale opportunity is given.”, a spokesman from Hypo Group stated.

Hypo Group´s aim is that “every economic unit is sustainably independent at the end of the day.” The bank pursues a stand-alone solution then. For the time being, Hypo Group waits for the approval of the Austrian supervisory authorities.